Most businesses, whether individual enterprises or corporations, often get to a point where they have to purchase some movable assets.
It could be a vehicle of any class, office equipment like computers and heavy-duty photocopiers, or maybe industrial equipment.
A small-scale farmer might feel a tractor can bring about a desired difference on the farm. An information technology business may require many computers to maximize the economies of scale.
A fast-moving consumer goods company may need a new fleet of vehicles to deliver its products as required. An industrialist may wish to purchase certain equipment but lacks the money.
Many entrepreneurs and farmers alike, delay or even fail to attain their dreams. Why? Because they lack the capital to buy their desired equipment and machines upfront.
This ought not to be the case anymore.
All these individuals as well as the companies have the option to go for asset finance.
Currently, it’s increasingly possible to fulfill your dream of owning a lot of moveable assets without having to pay the whole amount of money upfront. Asset-based finance remedies are widely available in the country to finance the purchase of vehicles or capital equipment.
Some assets with exceptional sale value, attract financing of up to 95℅ repayable within five years.
The bold marketing of asset financing by banks, coupled with the dealer’s promotions are making it fairly easier to acquire any of these assets. And gain considerable social and economic benefits.
You no longer require a lump sum amount of money to obtain your desired item. All you need is a deposit, a few documents, and arrangements with your financier.
Acquiring any of these aids is a dream shared by a lot of people across the country.
Initially, most people believed that most of these assets were beyond their reach and chose to save money for long periods or buy used ones.
Although banks are willing to offer loans, their customers are snapping up the appeals.
Luckily, motor vehicle dealers have also agreed with the financiers to avail their customers of the funds they need for any purchase. Some dealers have gone the extra mile to establish in-house leasing divisions to strengthen their vehicle distribution process.
Co-operative Bank and Isuzu teams at the launch of the daily basis loan repayment financing program.
Customers are appreciating the benefits of an increasingly vibrant asset financing initiative.
Asset finance is an impressive alternative because it is fairly simple, quick, and straightforward for the shopper.
The financier evaluates the level of risk involved in lending the potential buyer.
And according to how they view the customer’s financial standing, they’ll ask them to finance the purchase up to a given percentage.
A binding contract is then drawn up between the client and the financier specifying what each party must do as part of their deal.
Upon paying the initial deposit and the financier agrees to pay the remainder, the asset is handed over to the buyer. Who then, starts utilizing it to generate the money to pay the financier the agreed monthly installments.
On the other hand, the financier pays the difference to the dealer and looks forward to the monthly payments from the buyer.
As a result of this mode of funding new assets, the borrowers are happy, because they can pay back the loans within specified periods and eventually possess the assets.
According to experts, the future of this type of financing has great potential in Kenya.
The Co-operative Bank of Kenya, a major player in this area, has partnered with companies such as Toyota Kenya, Isuzu, and Simba Colt. To enable their customers to acquire vehicles and other equipment for their businesses.
Co-operative Bank Partnership With Toyota Kenya
They have come into a strategic financing partnership with Toyota Kenya. Which will enable you (their esteemed customers), to secure up to 95% asset financing when acquiring commercial and personal vehicles through Toyota Kenya’s portfolio.
That includes Toyota, Suzuki, Hino, as well as Yamaha. This program is anticipated to bail out businesses from the damages of the Covid-19 pandemic.
And to offer a long loan repayment period of up to 60-months.
On their part, the Co-operative Bank will also give a KES. 500,000 working capital loan, without additional security. And allow a grace period of 60 days before their customers start paying back the loan.
This partnership also enables fleet customers under Co-op Fleet Africa, the leasing arm of Co-operative Bank Group, to acquire additional units. This is an amplification of the standing deal that only covers the commercial component with the financing of the Hiace van and Hilux pickups.
The scheme is available for those buyers who need the direct acquisition of the vehicles, or for leasing. They have made the terms and conditions flexible to include MSMEs, Co-operatives, Corporate, Individuals, and Farmers. To help them retool their businesses upon the reopening of the economy.
About Toyota Kenya Limited
Toyota Kenya Limited is a subsidiary of CFAO Automotive, a division of the CFAO Group. CFAO Automotive publicizes the Toyota brand in 34 East, West, and Central African countries, as well as in the French overseas territories.
With its central headquarters in Nairobi, Toyota Kenya is presently the only distributor and service provider of Toyota, Yamaha motorcycles, and Hino trucks in Kenya. And also, an appointed distributor of the Suzuki brand. The company boasts a network of 33 branches, dealerships, as well as approved Toyota Service Centres across the country.
Co-operative Bank Partnership With Isuzu in Kenya
If you need to buy an Isuzu bus, truck, or a pick-up like the popular Isuzu D-Max, this is the right chance to do it. Courtesy of this partnership between Isuzu and Co-operative Bank, buyers will get up to 95% financing.
To pay for the vehicle of their choice, and additionally be given a whole two months period to use the asset before they start repaying the loan. This will allow you space to make the money to service the loan, which is to be repaid within an extended period of 4 years.
For those Isuzu customers who would equally need to increase their business working capital, they provide an extra loan of Ksh 300,000 to be repaid within 12 months. The offer comes with a most fairly-priced comprehensive insurance plan, priced at 4.75% of the vehicle value (that includes, the rare Political Violence & Terrorism). Additionally, Insurance Premium Finance is available to enable customers to pay insurance premiums in easy installments.
Co-operative Bank Partnership With Simba Colt
They have partnered with Simba corp to allow you to buy Canter or FUSO trucks affordably. Enjoy 95% financing as well as a 60 days grace period before you can begin repaying the loan. You also get mediated motor vehicle Insurance for the purchased vehicle.
You need not worry about capital for your business, in this arrangement, you can also apply for KES 500,000 working capital to strengthen your business.
Conclusion
With the presence of these asset financing partnerships between the Co-operative Bank and Toyota Kenya, Isuzu as well as Simba Colt, there isn’t a reason why you shouldn’t acquire your desired assets.
You can access financing for all your motor vehicle needs, as well as movable offices such as computers and so on.
So, go for these rare opportunities while they still last.
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About the Author
Fredrick Musungu is an experienced content writer, copywriter, and e-book writer with a blogging certification from WordPress and an SEO badge from Linked In. He helps businesses and individuals to increase their sales through conversion and optimized content online at Liberating Freelance. Visit the site and see what he can do for you or your clients.
