How To Apply For Asset Based Finance From KCB

July 20, 2023 Majira Media

Asset-based finance by KCB is a type of funding that uses assets, such as equipment, inventory, or accounts receivable, as collateral for a loan or line of credit. This type of financing is often used by businesses to raise capital based on the value of their assets. In this article, I will share on how you can apply for KCB asset.

How To Apply For Asset Based Finance From KCB

To get asset based financing from KCB, you will need to visit the nearest KCB bank with the following;

Duly filled KCB application form
Certified copies of Directors’ ID & KRA PIN certificates
Certified copies of Certificates of Incorporation and PIN
Company’s memos and Articles of Association
Last 12 months bank statements (for non-KCB customers)
Proforma invoice from seller or supplier
Recent valuation report (for used vehicles)
Copy of log books (for used vehicles)

Here are some general steps that businesses typically follow when seeking asset-based finance from a bank like KCB:

1. Contact KCB: Reach out to KCB to express your interest in asset-based finance. You can do this by visiting a local KCB branch, contacting their customer service, or checking their website for relevant information.

2. Discuss Your Needs: Speak with a KCB representative to discuss your business’s financing needs, the type of assets you plan to use as collateral, and the amount of financing required. They will provide you with information on their asset-based finance options and guide you through the application process.

3. Prepare Financial Documentation: KCB will require detailed financial documentation to assess your business’s eligibility and the value of the assets you are offering as collateral. This may include financial statements, tax returns, accounts receivable and payable reports, inventory reports, and other relevant financial information.

4. Asset Valuation: KCB will evaluate the assets you plan to use as collateral to determine their current market value. This may involve appraisals or inspections conducted by the bank or a third-party expert.

5. Submit the Application: Complete the application form and submit all the necessary financial documentation to KCB. Make sure to provide accurate and up-to-date information to expedite the evaluation process.

6. Underwriting and Approval: KCB’s underwriting team will review your application, financials, and asset valuations to assess the risk and determine the terms of the asset-based financing. This process may take some time, and the bank may request additional information during this stage.

7. Negotiate Terms: If your application is approved, KCB will provide you with an offer that includes the loan amount, interest rate, repayment schedule, and any fees. Review the terms carefully and negotiate if needed to ensure they align with your business requirements.

8. Fulfill Requirements: Once you accept the lender’s offer, you may need to fulfill certain requirements, such as signing legal agreements and providing additional documents related to the asset-based financing.

9. Manage the Financing: After securing the asset-based finance, ensure responsible management of the funds and use them for the intended purpose. Regularly monitor your assets, maintain good financial records, and adhere to the agreed-upon repayment schedule.

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