Bank of Africa and Deluxe Truck and Buses E.A., Ltd have partnered to offer affordable truck financing solutions to small businesses in Kenya.
The partnership will make it easier for small business owners to purchase trucks and manage their truck financing needs.
The agreement will see customers access up to 90 per cent financing and 0 per cent processing fees for purchasing all Ashok Leyland trucks and buses.
BOA will charge customers interest rates of as low as 15.67 per cent on the loans on a reducing balance basis for up to 60 months.
Speaking at the signing ceremony, BOA head of Asset Finance, Bernice Murigi said BOA is to ease the financial load on SMEs who are a key contributor to the economy, and through financing, we want to enable them to reduce their upfront costs to allow them to invest in other areas of their operations."
The deal is expected to boost sales at Deluxe Truck and Buses E.A. Ltd. the authorized distributor of the Ashok Leyland range of Commercial Vehicles and give Small, Medium Size companies and large commercial businesses more access to affordable financing options.
"BOA understands the unique challenges faced by SMEs in the transportation industry and has tailored its truck financing solutions accordingly,'' she said.
She added that SMEs can access competitive interest rates, flexible repayment terms, and dedicated support throughout the financing process.
"I want to appeal to all transport players in the SME sector to take advantage of this great offer, and we promise we'll walk with you through this journey,"Murigi added.
The financing through BOA is bound to provide SMEs with the means to purchase new trucks and lease or refinance their existing assets with a 5-year warranty, which will provide their customers with peace of mind in case of any unexpected repairs.
On his part, Deluxe Trucks and Buses managing director, Ameet Shroff said
"We will provide our customers with a five-year warranty for purchasing the vehicles and complimentary after-sales services,'' Shroff said.
The financing gap for Kenya's micro, small, and medium enterprises is estimated at Sh 2.3 trillion. The kind of financing BOA is providing is critical to closing that gap.
