Local Purchase Order (L.P.O) Financing

Local Purchase Order (L.P.O) Financing

LPO financing allows clients who have obtained purchase orders or letters of award to deliver goods and services or to carry out contractual works.

Features and Benefits

  • Financing from KES 50,000 to KES 10Million
  • Directly paid to supplier accounts
  • Up to 70% financing of cost of items to be supplied
  • Flexible security requirement
  • Competitive interest rates
  • Quick approval process
  • Maximum period of 90 days depending on the terms of the LPO

Qualifying Criteria

  • Valid LPO from reputed institutions or the bank’s list of Corporate companies
  • Pro forma invoice or quotation for items of purchase from the supplier(s)
  • Bank Statement for the last 6 months for ( for non-customers)
  • Valid business registration and permit documents
  • Valuation report where applicable
  • Audited accounts for amounts above KES 5M and Management Accounts for amounts above KES 2M
  • List of past contracts completed
  • Aging analysis for debtors/creditors
  • Copy of proposed collateral for borrowing.

Rates and Fees

  • Processing fee of 3%
  • Interest Rate of 2% per month reducing balance