July 19, 2019

Chase Bank Secures Insurance for SME Loans


By Etaarifa Contributor

Chase Bank Kenya has today officially partnered with the African Trade Insurance Agency (ATI)
enabling them to extend credit terms to clients, who largely fall within the Small and Medium Sized (SME) corporate bracket, and represents some 2.3 million small enterprises across the country. Of this number, only an estimated 9 percent have access to credit facilities. Billed as the “relationship bank”, Chase Bank is seeking to attract some of these under-served segments of the financial sector.

The International Finance Corporation estimates that in Kenya, Micro, Small and Medium Enterprises (MSMEs) experience an annual credit gap of over US$6 billion. This impacts a company’s ability to access finance and to compete with international companies.

With ATI’s insurance cover, Chase Bank can offer its new and existing customers a broader range of trade finance products with specific focus on invoice discounting. These products will support companies by providing them with credit that will help to maintain their business as they wait for their customers to pay. The product essentially allows the individual or enterprise to bridge the gap between the delivery of goods or services and the receipt of payment because it releases working capital.

Speaking at the signing ceremony, Chase Bank Kenya General Manager SME & Islamic Banking Iman Hussein reiterated the bank’s commitment to enabling its customers to achieve what matters most to them. “This partnership helps us support our customers by providing a solution that is accessible and that allows them to free up funds for their operational activities.

This product offering is aimed at suppliers of goods and services to reputable private and government institutions trading either as individuals, sole proprietors or limited liability companies.

Other special features about this offering are a highly favorable interest rate, quick turnaround time on facility processing, and a negotiated loan security structure. The cover with the Bank actually supports more bank facilities including letters of credit, short term loans and bonds, in addition to the invoice discounting

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