More Than Lending: Kingdom Bank’s Hands-On Approach To Trade Finance

In a competitive business environment where cash flow can make or break opportunities, Kingdom Bank is positioning itself as a strong ally for entrepreneurs and companies seeking to scale. The lender has rolled out a suite of trade finance solutions aimed at helping businesses secure tenders, fulfill orders, and manage import transactions with greater ease. 

The Bank’s approach blends attractive interest rates, flexible repayment terms, and collateral flexibility, particularly for existing customers, to ensure that businesses can access funding without unnecessary strain. This signals a deliberate focus on growing with customers rather than simply lending to them. 

1.Financing against Invoices and LPOs 

Kingdom Bank’s Invoice Financing (also known as discounting) allows businesses to access up to 80% of the value of an LPO before payment is received, with repayment periods ranging from 30 to 120 days. This is designed to ease cash flow bottlenecks for suppliers awaiting payment from clients. 

Similarly, the LPO Financing facility provides up to 70% of the LPO value, enabling businesses to fund procurement, labour, and other operational needs while awaiting payment from reputable organizations. 

2. Bid Bonds for Tender Confidence 

For contractors, suppliers, security firms, and consultants, the bank offers Bid Bonds that assure tendering entities of the bidder’s financial capacity to complete a project. A standout feature is that these bonds can be accessed entirely online via the Bank’s K-Bid platform (https://kbid.kingdombankltd.co.ke/), a convenience that eliminates the need for in-branch paperwork. 

3. Facilitating International Trade with Letters of Credit 

Businesses involved in importing goods from overseas can also benefit from Kingdom Bank’s Letters of Credit. These serve as a third-party guarantee to sellers, assuring payment on behalf of the buyer. Customers can access repayment periods of up to 120 months, coupled with competitive interest rates, making it easier to establish and maintain relationships with international suppliers. 

 Application Requirements 

To access any of these trade finance products, applicants typically need: 

• Certificate of incorporation or registration. 

• Valid business permits and relevant licenses. 

• Past financial statements (where applicable). 

• Completed application forms. 

• Supporting trade documents such as LPOs, invoices, or tender documents. 

Sector Watch 

Market analysts note that with these offerings, Kingdom Bank is not only addressing the immediate financing needs of businesses but also fostering long-term relationships built on accessibility and support. By streamlining processes, including digital platforms like K-Bid, the Bank appears intent on giving businesses both the capital and confidence to pursue larger contracts and expand their operations. 

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