Important Tips on How to Get a Small Business Loan

Getting a small business loan might be very challenging especially for a small business as the business may not have a good credit history or the physical assets that are usually required as collateral. Using some tactics, on the other hand, may perhaps make the whole process easier and more predictable. Getting a loan often…

SMES should look beyond banks for capital

Published in: Business Daily (Kenya), 2 May 2018 by JOB MURIUKI CEO, Momentum Credit Anyone who cares about the economic progress of this country must acknowledge the critical role that small and medium enterprises (SMES) play. However, there remains a serious threat to economic progress camflougaed in the form of a new international accounting standard – IFRS…

Everything you need to know about working capital loans

Working capital represents the operational liquidity and is the cash you use as a business to run the day to day operations. These operations include paying short-term debts, paying suppliers as well as your employees. Working capital is considered part of operating capital and is also directly proportional to current assets. Current assets include debtors…

Advanced Payment Guarantees in Kenya

An advanced payment guarantee APG is an assurance made by a surety made to a debtor or a customer that enables them to acquire goods. This might help your business tender for goods you previously you could not. With a payment guarantee, you are not only assured of better terms of the contract but more…

What is the Trade Finance Process?

What is the trade finance process? When a supplier requires the customer to prepay for goods before the supply, the customer may need to reduce the risk by requesting the supplier to document the goods. These documentations include trade credit insurance, factoring, documentary collection among others and are what makes up the trade finance process.…

Intresting Facts about Bid Bonds

Bid bonds otherwise known as surety bonds are issued by a supplier to a customer in bidding for a project mainly in construction to act as a proof that they will undertake the job and do it successfully once awarded. This is often required as part of the bid process. Although bid bonds do not…

Asset Financing in Kenya

When operating a small business you need to have financing options in case you face cash constraints. This is especially when running a small or medium-sized business SME which makes some options such as banking and traditional bank loans become quite difficult to handle because they tend to take a lot of time to process,…

What is Invoice Discounting & How it Works

Invoice discounting is one of the invoice finance methods that offer your business cash for invoices that your customers are due to pay. Small and medium-sized business SMEs usually find themselves in cash constraint positions and need access to quick cash. Invoice discounting, however, can provide an instant solution for such challenges as it offers…

Invoice Factoring Vs Invoice Discounting, Which Way to Go?

When looking for invoice financing, you either go for invoice factoring or invoice discounting. These two are very different options although might appear to have some similarity. There is much difference between the two but the main difference between invoice factoring and financing is credit control. This is part of invoice factoring while is not in invoice discounting.…