Trade Finance

Business Solutions

With our wealth of knowledge in trade finance, an experienced team, and an unparalleled drive to see you succeed in whichever stage your business is at, we offer you the best solutions to ensure your business keeps winning! We provide an array of services that enable importers and exporters to conduct international transactions that facilitate the movement of goods and services from one point to another, both locally and internationally.

 

LPO Financing

This is financing offered to suppliers with LPOs from reputable companies, to enable them execute their customers’ orders when they do not have the required funds.

 

Structured Trade & Commodity Finance

If you need a hand in bulk purchasing of goods, we can finance your business so that you execute bigger deals, and take advantage of economies of scale to make higher profit margins.

 

Bank Guarantees

This is a written, irreversible guarantee from us, assuring your supplier, customer, or beneficiary, of payment in the case that you do not fulfill your contractual obligation. This covers bid/tender bonds, performance bonds, advance payment bonds, and credit guarantees. These reassure the beneficiary of payment and reduce the level of risk involved in the business transaction.

 

Invoice Discounting

Cash flow is vital for the survival and smooth running of any business, especially SMEs. With Co-op Bank’s Invoice Discounting, you can withdraw money against sales invoices before payments are done, thus enabling you to improve your business’ working capital and cash flow.

  • Maximum loan – 80% of the value of the invoice less all of the bank’s charges
  • Minimum loan – Ksh 50,000
  • Maximum tenor – 2 months subject to the invoice period
  • Availability – Facility will revolve for 12 months upon which supplier will be reviewed for renewal

 

Letters Of Credit

Business always has an element of risk; especially when it comes to trade. With a Letter of Credit from Co-op Bank, you can assure a beneficiary of payment once the terms of a contract are fulfilled, thereby eliminating risk and setting the beneficiary’s mind at ease.

 

Pre-shipment Financing

These include pre-export finance and import finance loans which are available to both importers and exporters on a short to long term basis.

 

Import Finance Facility

This facility is available to importers who have receivables from identified and confirmed off-takers in the same currency as the facility.

 

Post Import Finance Facility

This is best suited for importers who are experiencing a mismatch between payment for imports and the receivables. After goods have been shipped to the importer, the bank pays the shipper on behalf of the customer and books a short-term facility to be paid off with the receivables once the goods have been sold.

 

Bills Discounting

With Bill Discounting, we provide exporters with an advance to ensure they remain liquid as they continue with their business.

 

Bills Avalization

This is where the bank confirms that the customer will honor a certain future payment by signing on a bill of exchange on behalf of its customer.

 

Stock Financing

This facilitates the importation of raw materials under letters of credit and guarantees. It enables the customer to increase his business value, efficiency, and productivity.

 

Trade Finance Key Fact Statement

Letters of Credit and Collections
Product Description Pricing
1. Import Letters of Credit Issuance Commission 0.5% per quarter or part thereof minimum Kes.1,000.
Acceptance Commission (For Usance LCs) 0.5% per quarter or part thereof minimum Kes.1,000.
Retirement/Payment Commission. 0.25% flat minimum Kes.1,000 plus swift fee Kes.1,500.
2. Export Letters of Credit. Advising without confirmation Customer Kes 1,000 flat- Non-customer kes 2,000 flat
Retirement/Payment commission 0.375% flat minimum Kes 1,000
Advising with confirmation Customer: 0.4% plus swift charges of Kes 2,000- Non-customer 0.5% plus swift charges of kes 2,000
Bill Negotiating under credit or advance made in Kshs or other currencies Customer 0.3% flat Minimum Kes 1,000 plus interest for tenor period min usd20 or equivalent,- Non-customer 0.4% flat Minimum Kes.2,000
3. Documentary Collections (Imports & Exports) Processing & Payment fee 0.3% of documentary collection amount, Min KShs.1,000 (Flat)
Release of documents against undertaking 0.15% of value, min.Ksh.600/= max. Ksh.5,000/=
Extension of bills 0.3% of documentary collection amount, Min KShs.1,000 (Flat), plus the SWIFT charges Kes1000
4. Bill Avalization – Avalization fee 0.5% per quarter, Minimum Kes. 1,000
5. Clean Payments (Customer transfers) Commission on abroad payments Kes.1,500 one-off
– RTGS for local payments Kes. 500 one-off.

 

Bank Guarantees
Product Description Pricing
1. Bid Bonds Issuance of Commission- Unsecured and partially secured. 1% per half-year minimum Kes.5,000.
Issuance Commission-secured and Cash Cover 1% per half-year minimum Kes.1,000.
2. Other Bank Guarantees Issuance Commission 2.5% per year minimum Kes.5,000.
Issuance Commission-Fully cash covered or 1st class bank counter-guarantee 2% per year minimum Kes 1,000.
Amendments to guarantees Kes 1,000 plus SWIFT charges Kes 1,500 if transmission through swift.
3. Export Bank Guarantees Advising Fee Kes.2,500
Payment 0.375% flat minimum Kes.1,000
Negotiating documents Customer 0.3% Minimum Kes 2,000- Non customer 0.4% Minimum Kes 2,000

 

Trade Loans and Supply Chain
Product Description Pricing
1. LPO Finance/Invoice Discounting Commission 2.5% flat
– Interest on Facility Banks base rate plus 4% per annum
– Extension fee (Advance fee + (banks base rate plus 4% p.a)
2. Trade Loans-Short Term Loans – Loan appraisal fee 2.5% per annum
– Interest rate Banks base rate plus 4% per annum
– Extension fee (Advance fee + (banks base rate plus 4% p.a)
3. Trade Loans-Bill Negotiated under an LC – Processing fee & interest – Customer: 0.3% flat min. Ksh.1,000/= plus interest for tenor period (Min. USD20 or equivalent)- Non Customer: 0.4% flat min. Ksh.1,000/= plus interest for tenor period(Min. USD20 or equivalent).
4. Commodity Finance – Structuring fee – 1% p.a for corporates,- 2.5% p.a for retail customer
– Interest rate Banks base rate plus 4% per annum
– Other fees As per TF products will apply (LC charges, Bill Avalization, etc.)
5. Supply Chain Finance – Processing fee 1% flat for corporates and 2.5% flat for retail customers
– Interest Base rate plus 4% per annum.
– Payment processing fee-Charged to supplier – Customers: Kes.250,- Non-customer Kes 2,000
6. Direct Import Financing Application fee 1% p.a
Interest rate Base rate plus 4% per annum.
7. Structured Trade Finance Structuring fees 1% flat.
Other Fees: Dependent on the product used to structure the facility. Each product’s pricing shall apply.

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Ecommerce

  Get more customers by accepting Online Card Payment via Co-op Bank eCommerce solution Do you promote your goods and services on the online space, e.g via a website, social […]

Payment Solutions

Fast, secure, & easy online payment processing

Ways to Bank

Our agency banking service (Co-op Kwa Jirani) This is a convenient and simple banking model to suit your lifestyle as well as offer you convenience.   What services are available […]

Trade Finance

With our wealth of knowledge in trade finance, an experienced team, and an unparalleled drive to see you succeed in whichever stage your business is at, we offer you the […]

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