Running a business is no walk in the park, especially in Kenya’s competitive and dynamic market. One of the biggest hurdles SMEs face is securing funds to fulfill lucrative tenders. That’s where unsecured LPO financing steps in—a game-changer for businesses looking to bridge cash flow gaps and deliver on large orders without putting up their assets as collateral.
If you’re an entrepreneur wondering how to make the most of this LPO financing opportunity, let’s break it down for you.
What is Unsecured LPO Financing?
Let’s start with the basics: Local Purchase Order (LPO) financing is a short-term loan provided to businesses to help them fulfill purchase orders from clients. It’s an invaluable tool for SMEs and contractors working with government or corporate tenders.
Unsecured LPO financing takes it a step further—offering the funds you need without asking for collateral. That means you can secure funding without risking your property, equipment, or other assets.
Unlike traditional secured financing, where collateral is a must, unsecured LPO financing puts trust in your business’s ability to deliver. It’s fast, flexible, and tailor-made for entrepreneurs who need immediate funding to stay competitive.
Why Unsecured LPO Financing is Essential for SMEs in Kenya
We’ve all been there—getting a dream tender only to realize your cash flow can’t support the project. SMEs in Kenya face unique challenges, including delayed payments, high competition, and the constant need to reinvest profits.
Unsecured LPO financing provides a lifeline in such scenarios. Here’s why it’s a must-have for businesses:
- No need for collateral: Perfect for businesses without significant assets.
- Quick access to funds: LPO financing is designed to be disbursed swiftly, so you can hit the ground running.
- Supports business growth: It allows you to take on more tenders, expand your operations, and strengthen client relationships.
- Minimal risk: Since no assets are tied up, the financial risk is much lower.
With this type of financing, you can confidently deliver on tenders without worrying about straining your resources.
Unsecured LPO Financing Providers in Kenya
The good news is that several financial institutions in Kenya offer LPO financing. However, the terms and conditions vary widely, especially when it comes to unsecured options. Let’s take a closer look at the competition:
- Discount Capital
- Covers up to 80% of the LPO value, making it the preferred SME partner of choice
- Absa Bank
- Offers unsecured LPO financing up to KES 12 million.
- KCB Bank
- Covers up to 60% of the LPO value.
- Co-Operative Bank
- Also offers 60% financing.
- Kingdom Bank
- Provides up to 70% of the LPO value, but here’s the catch—it requires collateral.
Now, let’s talk about Discount Capital, the true game-changer in this space.
How Discount Capital Stands Out as the best unsecured LPO financing provider in Kenya
At Discount Capital, we understand the unique challenges faced by SMEs in Kenya. That’s why our unsecured LPO financing is designed to empower your business with the highest level of support.
Here’s why we’re the preferred partner for many entrepreneurs:
Financing Up to 80% of the LPO Value
Why settle for 60% or even 70% when you can get up to 80%? This means you can fulfill more significant tenders without stretching your finances.
No Collateral Required
Unlike many competitors, we don’t ask for collateral. We believe in your business potential and trust your ability to deliver.
Fast Approval and Disbursement
We know time is of the essence when fulfilling tenders. Our process is streamlined to ensure funds reach you as quickly as possible.
Tailored Solutions for SMEs
We don’t do one-size-fits-all. Our team works with you to customize financing based on your tender’s requirements.
Transparent Processes
No hidden charges, no surprises—just clear and straightforward terms that you can rely on.
Ready to learn more? Check out our detailed offering here.
Qualification Criteria and Application Process
Worried about qualifying? Don’t be. At Discount Capital, we keep things simple. Here’s what you need to qualify for unsecured LPO financing:
- Business Age: Your business should have been operational for at least six months.
- Valid LPO: Ensure you have an LPO from a reputable organization, whether it’s a government body or a private corporation.
Once you meet these requirements, the application process is straightforward:
- Submit your LPO and supporting documents.
- Our team reviews your application, ensuring everything checks out.
- Get approval and receive funds within a short period.
That’s it! No jumping through hoops or dealing with endless paperwork.
FAQs About Unsecured LPO Financing in Kenya
Still have questions? Let’s tackle a few common ones:
- Q: How much financing can I get from Discount Capital?
A: We offer up to 80% of the LPO value, which is one of the highest in the market. - Q: How long does it take to get approval?
A: Our approval process is fast, with funds disbursed within a few days after submission of complete documents. - Q: Do I need collateral?
A: No collateral is required for our unsecured LPO financing. - Q: What interest rates should I expect?
A: Our rates are competitive and tailored to suit SME needs. Contact us for a personalized quote. - Q: Can startups access this financing?
A: If your business has been operational for at least six months and has a valid LPO, you’re eligible.
Why Choose Discount Capital?
In a sea of options, Discount Capital stands out as the SME partner of choice. With our focus on transparency, flexibility, and speed, we’re here to help you seize opportunities and grow your business.
Unsecured LPO financing is more than just a loan; it’s an enabler for SMEs to grow and thrive in Kenya’s fast-paced market. Whether you’re chasing government tenders or corporate deals, Discount Capital is here to support you every step of the way.
Take the leap. Fulfill those tenders. Watch your business soar. Contact us today at +254 713 383 855 or visit www.discountcapital.co.ke/qualification
