We offer a variety of trade services designed to meet a range of trade financing requirements so that your company can seize new business opportunities whenever they arise. Customers benefit from our streamlined processes designed to provide best in class service levels and reduce the hassles associated with trade transactions.

KCB facilitates local and cross-border trading through operations and liquidity financing, as well as mitigating risks inherent in trade.

Choose from our range of Trade finance solutions based on your unique needs;

Letters of Credit help reduce the various risks that come with local and international trade. We support you by guaranteeing payment to your supplier if specified terms are met.

Rates & fees

Import Letters of Credit

  • Issuance – 1.0% per quarter
  • Usance - 1.0% per quarter
  • Retirements – 1.0%
  • Amendments – USD 30
  • Contract financing – 10% of LC value

Export Letters of Credit

  • Advising – USD 80 for non-customers; USD 40 for customers
  • Confirmation – 2% for customers and non-customers (min. USD 200)
  • Discounting – 2%
  • Documentary collections – Retirement 1% (min. USD 50 & max. USD 400)
  • Release commission – USD 30 for customers; USD 40 for non-customers
  • Past due commission - USD 30 for customers; USD 40 for non-customers
  • LCs swift charges - USD 90 for customers; USD 1000 for non-customers
  • Guarantees – 2% p.a for above USD 1 million; 1% p.a for below USD 1 million
  • Cancellation commission – USD 100
  • Delivery charges – USD 140
  • Contract financing guarantees – 10% commission

Benefits

  • Guaranteed payment - Payment is guaranteed by the issuing bank to the confirming bank, as long as compliant documents are presented.
  • Reduced risks - Risks usually encountered by the buyer are mitigated.
  • Allows multiple shipments - Allows for multiple/continuous shipments as long as quality of products and price are guaranteed by an independent pre-shipment inspection company.
  • Flexibility in products - Allows access to other products e.g. pre-shipment finance and structured finance.
  • Timely delivery - Ensures delivery is done within schedule and payment.

This short-term offer is primarily offered to exporters. We help finance your products and base your repayments on your export proceeds or funds owed by your buyers.

Benefits

  • Provides working capital - Helps to generate additional working capital to enable the client meet production demands.
  • Flexible security requirements - Security requirements to take up this loan are dependent on amount.
  • Allows for large consignments - It facilitates the taking of very large orders.
  • Affordable rates - Offers affordable rates compared to other borrowing facilities.
  • Revolving basis - Accommodates re-borrowing after a specified period of time.

Sometimes your payments to your suppliers fall due before you are paid by your customers. With the Post-Import Finance Facility, KCB will bridge the financing gap and give you flexibility with additional time on your credit.

Benefits

  • Extended credit period - The Bank allows its client an undisclosed extended credit period, allowing for negotiation for better rates with the seller.
  • Low rates - Enjoy lower lending rate (LIBOR, plus a small margin).
  • Offsets LC bills - Used by importers to pay the LC Bills as they fall due instead of debiting the current account.
  • Low fees - It is ideal to use when client account is not in credit balance as the fees charged are much lower than the O/D.

When you receive an order from a known buyer but are unable to finance it from your own resources, KCB will offer you LPO Financing to enable you fulfil the order.

Benefits

  • Up to70% financing - Get financing of up to 70% of cost of items to be supplied.
  • Flexible security requirement - Security requirements to take up this loan are dependent on amount.
  • Low interest rate - Enjoy low interest rates on your loan.
  • Quick approval process - Enjoy a quick approval process for your loan.
  • 90 days or less payment disbursement - Disbursement takes a maximum period of 90 days depending on the terms of the LPO.

Disbursement takes a maximum period of 90 days depending on the terms of the LPO

When you sign a business contract and need a guarantor, KCB Bank will step in on your behalf to reduce the risk of non-payment or non-performance. KCB Guarantees are accepted both locally and internationally.

Rates & Fees

  • Issuance – 1.0% per annum.
  • Cancellation fee – SSP 1000 (USD 100).
  • Amendment fee – SSP 300 (USD 30).

Benefits

  • Increase in liquidity - Client obtains credit hence increasing their level of liquidity.
  • Immediate compensation - In case the customer defaults on payment, the beneficiary gets immediate compensation.

Don’t stall your project due to any unreceived payments. Our working capital loan facility allows you to stay liquid pending any receipts or collection of payment for work already invoiced. This facility offers the benefit of managing working capital and cash flow requirements for the contractor such as wages, salaries and other supplier payments pending collections.

Rates & Fees

  • Sight bills – discount for 2 days at current interest rate (min. USD 15).
  • Usance – discount to due date at current interest rate (min. USD 15).
  • Sight – discount for 14 days transit period at current interest rate (min. USD 15).

Benefits

  • Immediate access to funds - Immediate access to the proceeds of sales regardless of unreceived payment from customers.
  • Simple process - Enjoy a simple application process for this credit facility.
  • Simple security requirements - Enjoy additional working capital with simplified security requirements.

This credit facility is extended to producers of products who do not have access to Balance Sheet Lending. The producer obtains liquidity by leveraging his inventories well before the goods are sold into the market.

Benefits

  • Immediate access to funds - Immediate access to the proceeds of sales regardless of unreceived payment from customers.
  • Simple process - Enjoy a simple application process for this credit facility.
  • Simple security requirements - Enjoy additional working capital with simplified security requirements.

We enable the importation and exportation of goods by handling the documents presented in the required order. This could be cash against documents, acceptance documents and/or the banks guarantee.

Benefits

  • Low bank charges - They are cheaper than LC’s in terms of lower bank charges.
  • Short processing time - Enjoy short processing periods and speedy payments.
  • Assured payment - If documents are against acceptance (DA), it allows an importer a period of credit while assuring the exporter of payments.
  • Flexible bill settlement - The drawee has flexibility on settlement of bills (especially for documents against acceptance).
  • No impact on customer’s credit lines - It bears no impact on the customer’s credit lines.

This is cross-border trade using non-standard security where the intention is to get repaid by the liquidation of a flow of commodities.

Benefits

  • Access to financing - Gain access to financing where no other financing is in place.
  • Financing matched with trade cycle - Financing facility is tuned to the producer’s production and trade cycle.
  • Off balance sheet operation/liquidity - It operates on off balance sheet financing, keeping debt to equity low.
  • Producer benefits from his record of accomplishment - Allows producer to benefit from his track record in a reduced risk environment.

This credit is extended to a seller who obtains financing and receives funds immediately after providing a sales document, which is sent to the buyer’s bank on behalf of the seller.

Benefits

  • No need for an LC - There is no need to get a Letter of Credit to get funded - The product can convert forward receivables into cash on demand so as to accelerate capital turnover and relieve the pressure of finance.
  • Improvement of liquidity - The product can convert forward receivables into cash on demand so as to accelerate capital turnover and relieve the pressure of finance.
  • Simple process - Enjoy a simple financing process upon application.

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