Mwananchi Credit Limited is the best import finance company in Kenya. It provides its customers with financing services for the import of goods and services to be sold locally in the country. We offer a wide range of financial solutions to help businesses meet the needs of their customers while staying profitable. These financial solutions help businesses manage their cash flow and stay solvent even during challenging economic times.
Mwananchi Credit Limited has a wide network of branches across all regions in Kenya, making it easy for you as a business owner to find one near you. The company also has extended hours so that regardless of your schedule, you can access their services at any time without having to reschedule any meetings or appointments.
What Does Mwananchi Credit Limited Do?
Mwananchi Credit Limited is Kenya’s Number 1 provider of logbook loans and other related secured emergency loans, one of them being Import finance.
What is import finance?
Import financing is the process of financing the purchase of goods that are manufactured in a different country. These goods will usually be shipped to Kenya before they are sold locally. It is a process that allows businesses to buy goods that they need to continue operations at the best prices available. Imported goods can be the key to your business succeeding in the marketplace. However, you need to know how to finance the purchase of these products. Import financing can be a good option if you have a steady sales history.
Uniquely, the need for import financing arises due to the difficulties that businesses face when trading overseas alone, however, when importers are exploring different financial options this can add further complication.
The implementation of Import finance has helped encourage, and indeed shape the world of trade as we know it today. The level of risk and amount of moving variables involved in trading overseas is ever present, however, the application of certain Import finance instruments can help protect businesses.
How does import financing work?
Many transactions, and often large sums of money depend on a certain level of trust with the counterpart involved. Throughout the years, as economies and businesses expand, the trust required for these transactions is more difficult to obtain, which is where instruments of Trade Finance come into play.
Types of import finance
Usance/ Standby Letters of Credit:
- When a Usance Letter of Credit is applied in a transaction, it allows payment from the buyer to be deferred. This gives the buyer more time to inspect – and in some cases sell – the goods.
- When a Standby Letter of Credit is applied in a transaction, it allows the seller of the goods peace of mind surrounding payment, as it is a guarantee of payment – usual issues by a bank. It is usually seen as a last resort, but it prevents any risk of non-payment in a transaction.
- Bank Guarantees are exactly what they sound like, a guarantee from a bank that certifies the creditworthiness of a buyer. They do this, by offering to fulfill the financial obligations of the buyer, in the scenario they can not.
- The difference between a Bank Guarantee and a Letter of Credit is how they are used. Traders that are involved in the regular import and export of goods a more likely to use Letters of credit. In contrast, Contractors involved in the bidding on infrastructure projects are more likely to use Bank Guarantees.
- Invoice financing is a method of financing that involve the selling (or shift of liability) of their accounts receivables. Imagine a company sells its goods to Consumer A. They grant 90-day payment terms on the transaction, however financing the outstanding invoices, allows access to these funds earlier. A third party – usually an Invoice Finance firm – will purchase or commit to the invoices, paying a discounted price for them or taking a fee from the transaction.
- Asset-Backed Facilities or Asset-Based Lending is the financial tool of a business securing a loan against their collateral (assets). The asset-based loan is secured by many and either of the following:
- Accounts Receivables
- Buildings/ any other assets on the balance sheet of the business.
Import finance in Kenya: Mwananchi Credit process flow
Would you like to import a car and get financing?
You can now import a vehicle of your choice with Mwananchi Credit Import Financing.
With only a 30% deposit of the total value of the car, we will import a vehicle of your choice, clear and register it at the port of Mombasa.
Mwananchi Credit process flow for Import Finance is as follows:
- Mwananchi credit is responsible for verifying client inquiries by contacting and confirming that indeed client is ready to take the offer.
- Client to offer specifications on the particular vehicle client is interested in
- Mwananchi credit to forward the vehicle details particulars to our partners
- Partners to provide options for clients to choose from with estimated landing costs.
- Client confirmation on vehicle choice plus an initial deposit to Mwananchi credit account. This is followed up with an Interim offer letter for proper booking in our CBS.
- Client signing of the actual offer letter.
- Mwananchi credit to release the vehicle to the client upon successful registration.
Import financing requirements
When you are importing goods into your country, you will need to make sure that they meet the requirements of your trading partners. These requirements include:
- Bill of lading
- Jevic / Export Certificate
- English/Japanese Logbook
- Import Declaration Form
- KRA pin & ID Copy of the client
Why Choose Mwananchi Credit Limited For your Import Financing?
Mwananchi Credit offers vehicle import financing at the lowest rate in the market to make sure the process is fast. With our reliable partners, your car will be right at your door-step in just 45 working days.