Import Duty Financing
Importing is a capital-intensive business process that needs business owners to maintain sufficient working capital at all times in order to keep their operations running smoothly. Trading companies' cash flow is slowed by the fact that most clients operate on credit.
Import Duty Finance (IDF) is a financing solution for importers that aims to make the clearance and shipment of imported cargo from the port/airport of origin to the final destination go as smoothly as possible. Importers of products and services are the focus of the solution. These are funds made available to borrowers in need of capital to complete import transactions, especially when cash flow is tight.
Knowing More about Import Duty Financing In Nairobi
Import Duty Finance is a short-term lending facility provided to importers of motor vehicles and other container products to clear port charges on their behalf, allowing for quicker settlement of duty charges at the Kenya Revenue Authority (KRA) and other bodies with the aim of avoiding storage and demurrage charges.
Payments/disbursements are made directly to the service provider, such as KRA against Proforma invoices, and the facility is booked in the customer's account. Edenbridge Capital Limited focuses on raw material importers, second-hand motor vehicles (individuals and dealers), equipment, second-hand clothing ('mitumba'), and electronics.
The Importance of Import Duty Financing
• Allows foreign retailers to overcome cash flow issues by extending credit options
• Allows the importers of new cars to release them from the port while dealing with the import duty taxes and port charges later
• It assists importers in getting goods into the country and financing their business objectives
• Import traders can easily handle their cash flow and acquisitions with funding solutions such as import finance. Since the import market is a capital-intensive one, traders must keep enough cash on hand to run their businesses smoothly and to purchase goods on credit
• Due to delays at the port, importing goods poses a significant risk to the company's cash flow. Changing freight rates and import tariffs increase the transaction's cost and uncertainty. Money from the company is paid out before the goods are delivered
• Import duty financing in Kenya helps companies alleviate these financial strains by providing additional funding to ensure prompt payment of suppliers, freeing up working capital for other purposes
FEATURES OF IMPORT DUTY FINANCING FROM EDENBRIDGE CAPITAL
• We finance 100% of correctly calculated Duties and Taxes as per Kenya Revenue Authority’s (KRA's) guideline
• No maximum or minimum amount
• Payable within a period not exceeding twenty-four months (24 months)
• The interest rate is at 3.5% per month on a reducing balance
• Paid directly to Kenya Revenue Authority (KRA) and Kenya Ports Authority (KPA)
Frequently Asked Questions On Import Duty Financing
WHO CAN AVAIL IMPORT FINANCE?
Import financing will help businesses that import goods and sell them to other businesses keep their cash flow in check. In just 48 hours, financial institutions in Kenya such as Edenbridge Capital will provide 100 percent import duty financing on import duty taxes and port charges for imported consignments.
HOW LONG IS THE IMPORT FINANCE TENURE?
Import funding solutions may be tailored to a company’s unique needs and specifications. These financing options will provide funds for a period of time longer than 180 days.
This product will allow you to pay for your imports’ shipping, customs, and storage fees. It provides you with an easy and manageable repayment plan that lasts up to 24months.
HOW LONG WILL IT TAKE BEFORE MY LOAN IS APPROVED?
6 Hours
WHAT IS THE PROCESS FOR PAYING IMPORT DUTY?
When you carry goods into Kenya, you must pay an import duty tax to the Kenya Revenue Authority (KRA), which is the government agency responsible for collecting taxes and revenue.
Import Duty Financing Requirements
Our import duty financing options in Kenya are adaptable and ideal for a wide range of sellers seeking capital for import transactions. The following are required;
• A copy of the National Identity Card (ID) and a copy of the PIN Certificate are needed (original ID to be provided for verification)
• Invoice for the vehicle or other products
• For the applicant, an Import Declaration Form with two colored passport photos is required (IDF)
• From the country of origin, an export certificate (English version of a Japanese log book) is needed
• Mpesa statements/certified bank statements for the last six months (or both if available)
• Invoice from the original bill of landing (certified true copy)
• Certificate of Export (English version of Japanese logbook)
• Purchases/sales reports, services for traders/pay slips, and employee appointment letters
• Documents from the Kenya Bureau of Standards (KEB)
• Insurance for the seas
How Much Do You Need
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Min loan amount - Kshs 100,000
Max Loan Amount - Kshs 10,000,000
Max Repayment Period - 12 Months
Max Loan Amount - Kshs 10,000,000
Max Repayment Period - 12 Months
Import Duty Financing At Edenbridge Capital
Import duty financing in Kenya will help you establish confidence and good relationships with your overseas suppliers by shortening the payment time. As a result, the company would be in a better position to negotiate better terms in commercial contracts between buyer and seller.
Edenbridge Capital is the best lender to get your loan from if you need import duty financing to get your car or products released from port within the shortest time possible. It's critical to learn more about import duty financing in Nairobi, particularly if you're dealing with multiple import transactions.