SIB to offer SMEs 200 million shillings in new trade finance offer
The Standard Investment Bank (SIB) has ventured into trade finance for small and medium enterprises (SMEs) as fixed income investments are hit by the stock market downturn and a weaker shilling.
The bank on Tuesday signed an agreement with commercial finance provider Recolte to provide short-term, unsecured financing to small businesses to help them manage their working capital needs.
Credit solutions including local purchase order (LPO) financing, contract financing, reverse factoring and invoice discounting will be available through RecoSIB, an entity resulting from the partnership.
Funding will be capped at 200 million shillings per project, at a monthly interest rate of 5% and a processing fee of 4%, payable in six months. ‘
“For a long time, investment banks have limited their activities to capital markets and to see a bank backed by the Nairobi Stock Exchange (NSE) offering a fast liquidity solution is a great achievement,” the NSE chief executive said on Tuesday. , Geoffrey Odundo.
SIB has always offered asset management, securities trading, market research, investment management and corporate finance services.
Its entry into trade finance for SMEs comes at a time when the market was bleeding following high inflation in countries like the UK and the US, driving foreign investors out of the NSE.
RecoSIB seeks to meet the needs of suppliers and entrepreneurs whose growth has been hampered by strict measures instituted by conventional short-term financiers.
“We take advantage of the credit faster than if the entrepreneur went to a bank. Bid bonds are used in a record time of 30 minutes while performance bonds through us are available within two days,” said RecoSIB Managing Director David Muia.
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