How You Can Now Own CAT Equipment with Just 5% Upfront Thanks to Stanbic Bank Kenya
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Stanbic Bank Kenya has partnered with Mantrac Kenya, the authorized dealer for Caterpillar Inc. (CAT) equipment in the region, in a new financing agreement designed to make construction, mining, and heavy machinery more accessible to enterprises across Kenya.
This financing agreement combines Stanbic Bank Kenya’s expertise in asset finance with Mantrac Kenya’s extensive knowledge of heavy-duty equipment, offering a solution aimed particularly at small and medium-sized enterprises (SMEs).
CAT equipment is widely used across construction, mining, agriculture, and infrastructure sectors, which are critical areas for Kenya’s economic development. However, the high upfront costs have often limited SME participation in these sectors.
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With this new offering, Stanbic Bank Kenya and Mantrac Kenya aim to lower the financial barriers by providing a structured facility that covers nearly the full cost of CAT machinery while offering supportive terms for businesses looking to expand or upgrade their equipment.
Key Features of the Financing Package
- Up to 95% Financing
Under the new arrangement, Stanbic Bank Kenya will offer up to 95% financing for CAT equipment. This will significantly reduce the upfront capital burden and allow companies to preserve cash for other operational needs.
- Zero Processing Fees
A major feature of the deal is the Stanbic Bank zero processing fees for CAT equipment, which will help lower the total cost of acquiring the machinery. This is particularly beneficial for small businesses that often struggle with hidden or upfront administrative charges.
- 72 Months Repayment Period
The Stanbic Bank’s Vehicle and Asset Finance facility backing this agreement will offer repayment periods of up to 72 months. This will allow businesses to align their loan repayments with their cash flow cycles, helping them manage expenses while maintaining productivity.
- 60-Day Repayment Holiday
To further ease the onboarding of new equipment into operations, the financing solution includes a 60-day repayment holiday for CAT equipments. This two-month grace period gives businesses time to deploy their machinery, generate income, and stabilize their operations before the first installment is due.
- Unsecured Working Capital Loans of Up to KSh 5 Million
The partnership also provides operational liquidity support. Businesses purchasing CAT equipment can access Stanbic Bank Kenya unsecured working capital loans of up to KSh 5 million through the Pamoja Trader account.
These loans are designed to help SMEs manage short-term liquidity needs like supplier payments, inventory restocking, or operational expenses, all without the requirement for collateral.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.
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