Co-operative Bank, Isuzu East Africa partner to address SMEs’ challenge
By Amos Mburu
Through asset financing, Cooperative Bank of Kenya and local vehicle assembler Isuzu East Africa (Isuzu EA) has agreed to work together with business community to accelerate economic growth.
In the partnership, Isuzu customers are set to enjoy Ksh 300,000 working capital to empower their business payable in 12 months, a 60-day repayment holiday that will allow SMEs to generate monthly installments, the lowest market negotiation fee of one per cent and the longest re-payment period of 60 months in the market.
Co-operative Bank Director for Retail & Business Banking, Mr. Arthur Muchangi emphasized the need for SMEs to take this opportunity to re-tool and renew their motor vehicle fleet at very affordable terms.
“Our message to customers is simple; if you desire to purchase an Isuzu bus, an Isuzu truck or a pick-up such as the famous D-Max, this is the best time. Through this partnership between Isuzu and Co-op Bank, customers will get up to 95% financing to purchase the vehicle of their choice, and in addition be given a whole two months to use the vehicle before they begin repaying the loan. This will give customers space to generate cash to service the loan, which is to be repaid over an extended period of five years. For those Isuzu customers who also wish to boost the working capital of their business, we are providing an additional loan of Ksh 300,000 to be repaid in 12 months,” said Mr. Muchangi.
Isuzu EA Managing Director Rita Kavashe noted that this program will enable customers invest back in their business without affecting cash flow and thereby help achieve exponential growth. Rita began by explaining the rationale for partnering with Cooperative Bank.
“Our decision to partner with Coop Bank was informed by their business DNA, dealing with our customer base, the SMEs, their deep understanding of customer cash generation; and experience with SME customers’ business cycles. Today, we are happy to announce to a partnership that will see SMEs enjoy a raft of benefits,” said Rita. “We strongly believe that this partnership will enable SMEs grow their business without affecting their cash flow,” added Rita.
She added that the partnership with Co-op Bank was crucial, noting, adding Isuzu EA aims to make it easier for SMEs to access financing for their Isuzu products that SMEs strongly rely on to build, grow and sustain their businesses.