Isuzu East Africa & Co-operative Bank announce Asset Finance Partnership

Leading local vehicle assembler Isuzu East Africa (Isuzu EA) and Cooperative Bank of Kenya, have today announced an asset finance partnership that seeks to address SMEs’ challenge of access to finance and acceleration for business 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 instalments, the lowest market negotiation fee of one per cent and the longest re-payment period of 60 months in the market.

Speaking at the signing and announcement ceremony, 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.

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 upto 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.

Mr. Muchangi added that the offer comes with a most reasonably-priced comprehensive insurance package priced at 4.75% of vehicle value (that includes Political Violence & Terrorism). In addition, Insurance Premium Finance is available to allow customers pay insurance premiums in easy instalments.

Isuzu EA Managing Director Rita Kavashe noted that the partnership with Co-op Bank was crucial, adding that 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.

“Last year, we ran a series of ground activations to understand customer needs and expectations. Most customers indicated that buying decisions were affected due to banks not willing to lend due to rate cap legislation among other issues. We therefore thought it best to partner with Coop Bank and address the challenges above as the economy recovers from the 18 months recession that affected SMEs.” added Rita.

Rita also noted that the challenges of doing business in Kenya cannot be solved by one company or one sector alone. But by pooling resources and sharing knowledge, leveraging on existing and new opportunities to drive long-term growth across the Kenyan economies.

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