Ktalk mbirrionaires kujeni hapa kidogo!
So jana I went shopping for a bank guarantee in some 3 banks and what i found out is that its next to impossible to get a bank guarantee especially for small businesses in Kenya.
they are either wholly cash based or 50% cash and 50% collateral.
Shida yangu ni hii, i need a bank guarantee of 5m to be able to service a tender i’ve just won. I have collateral(land and motor vehicles) but not the cash. Nitasaidika vipi?
I run a small travel agency
ume try insurance company? Saa hii banks are on a tight rope juu ya interest rate amekua very strict on the work juu the profit margin and provision of bad debts has gone down thats why they will ask you for many collateral ndio ukiepa they sell it.
how does it work with insurance companies?
even most insurance companies only give such guarantees to existing clients that have insured a substantial portfolio with them. That is why it is advisable if you are a business to have all your insurance needs handled by a single insurer. From Auto, WIBA, health etc etc, you will stand a better chance to enjoy some of tehse fringe benefits
ama utafute mtu mnaelewana atoe the 50% cash na wewe utoe the 50% collateral then agree how to share profit, maybe 50-50 ama 60-40
Eeeeeeeh kumbe this is how it works, i thought it is just a walk in affair…
Following…but to them wewe ni small player, people borrow upto 300M…and that is given without collateral, just the business idea
naaah, unlike other services that are solely handled by the underwriters, this one goes way up the ladder and involves the finance manager as well… its a big risk to the insurer. The exposure is huge… and it is in pure black and white, in case the client fails to live up to expectations the insurer pays. No two ways about it.
Those who borrow without collateral it’s because they have big names. They just give banks personal guarantee as collateral.
tunajaribu kufika huko lakini the obstacles huku chini ni mob sana. nimechukuwa tittle deed na log books nipelekee my supplier nione if it will work that way.
@Young I think this is the solution to go for now.
thanks for the idea, will look into it.
First things first, which are these 3 banks ambazo umeendea?
KCB, BOA and Family thats where the company has accounts.
hehe Naelewa, i have a friend that has an interior design company that is constantly faced with such huddles, he has to come up with Cash upfront for most of the projects he lands to get such guaratees. He has worked with Safaricom and several big companies but he still does not cut it and enjoy the benefits that his Muhindi competitors do. The muhindis can even get all the material from a muhindi hardware free and pay after the contract, same to bank guarantees and insurance guarantees from Muhindi Owned banks/Insurance companies.
Ebu jaribu DTB HQ leo alafu ukuje uniambie wamekushow nini. I might help. Might
Siku hizi bank ni who you know. Jaribu jamii Bora bank,imeniokolea matimes. ukitaka naweza kutumia no. ya jamaa wa credit huko uone kama mtasaidiana.
on second thoughts,umeongea na anko uwes?
hapa ndio wahindi huweza black kenyans kwa biashara. but pia nimenote wahindi wengi huwa wameeka mali yao in form of cash ama liquid assets nasi nyeuthi zetu ni kununua mashamba na kujenga manyumba which ties up all the cash so mtu akitaka kufinance kitu lazima loan but wahindi ni kama overdraft from their fixed accounts
I once needed financing from Family bank, walinipeleka hivi hivi hadi nikawachana nao. On asking my documents back, pia wakanipeleka hivi hivi hadi nikawaachia