27 Aug Import Financing In Kenya & How It Can Benefit Your Business
If you have ever imported something, a container or maybe a vehicle, you have probably experienced some of the common challenges many traders face, especially at the Kenyan port or even from the country you’re importing from. For example, some suppliers will ask for payment upfront before they manufacture and ship your goods to Kenya putting a strain in cash flow for you or your business.
This trade is not easy and as you navigate through the process, these challenges, especially around financing and getting your cargo cleared are bound to happen.
Import Financing in Kenya
This is where the need for import financing in Kenya comes in hand. Import financing is a short term credit facility meant to finance port charges on behalf of importers of either goods or containers.
The aim is to facilitate fast settlement of duty charges at the Kenya Revenue Authority (KRA) and other government bodies to avoid delays. It is basically a short term type of financing provided by a third party.
Import transactions are always a big burden on a company’s cash-flow because the delays and complications often involved at the port mean money is paid out long before the goods are delivered. As well as the cash-flow burden, changing freight rates and import tariffs add costs and uncertainty to the transaction.
In Kenya, over the past few years, international trade has led to an increase in demand for import finance. Why is this happening? Well, there are clearly many benefits of importing, such as lower prices and higher quality of goods or vehicles. The challenge of financing however still remains which always leaves businesses starved for working capital.
How Import Financing in Kenya Helps Businesses
Import financing in Kenya can help businesses ease these financing pressures by raising additional capital to ensure prompt payments for suppliers, which in turn can free up working capital for other business needs.
Financial Institutions like Ngao Credit offer 100% import financing on duty and port charges for imported consignments in just 48 hours. All you need are:
- Your original importation documents
- Original national identification
- Kenya Revenue Authority PIN
- Your latest 6 months bank statements
- A post-dated cheque.
This financing helps importers to raise capital as they source for vital goods and raw materials from overseas suppliers.
Import financing in Kenya speeds up the payment cycle and can help to build trust and strong relationships with your overseas suppliers. This, in the end, puts your business in a stronger position to negotiate for better terms in the commercial contracts between buyer and seller.
Want to know more about import finance and how it can help your business ease cash flow? Call us now on +254 709 650 000 or email is us
firstname.lastname@example.org for advice from our professional advisers.