Co-op Bank’s SME Financing of Up To Sh15 Million
Small and medium-sized enterprises face numerous challenges, including lack of finances and limited business activity. With the Covid-19 pandemic, MSMEs are among the firms that have been hit the hardest.
Finding funding during the Covid-19 pandemic when every industry including financial institutions has been difficult.
In helping recognize and solve difficult cashflow problems that small businesses face Co-operative Bank has fine-tuned its lending product to help MSMEs.
MSME Overdraft at Co-op Bank
The overdraft facility comes in handy for businesses in need of a quick cash injection to fund their operations. The overdraft program provides much-needed working capital to enterprises that would otherwise have had to shut down owing to a cash flow shortage.
When payments are late, for example, business does not have to come to a standstill.
The MSME Overdraft facility from the Co-operative Bank allows a business to withdraw funds from its current account in excess of zero up to a maximum set by the bank. This gives a business the freedom to settle expenses before being paid for the work you’ve done. The limit is valid for a period of up to 12 months and is renewed based on performance.
Loan amounts available under the MSME Overdraft, which is based on the size of your business and the collateral you provide:
| LOAN FEATURE | BRONZE | SILVER | GOLD |
|---|---|---|---|
| Unsecured overdraft loan | 600,000 | 6,000,000 | 10,000,000 |
| Secured overdraft loan | 3,000,000 | 8,000,000 | 15,000,000 |
MSME Term Loan from Co-op Bank
A company or its owner can borrow money for a set period of time in order to fund business expansion or increase supply capabilities. Based on the size of your business and the collateral you provide, the amount can be repaid over a period of up to 60 months:
| LOAN FEATURE | BRONZE | SILVER | GOLD |
|---|---|---|---|
| Unsecured overdraft loan | 600,000 | 6,000,000 | 10,000,000 |
| Secured overdraft loan | 3,000,000 | 8,000,000 | 15,000,000 |
| Payment period for unsecured loan | Up to 24 months | Up to 24 months | Up to 24 months |
| Payment period for secured loan | Up to 60 months | Up to 60 months | Up to 60 months |
