I&M Bank to Offer Car & General Distributors Up to KSh3M in Zero-Interest Financing
I&M Bank has partnered with Car & General Group to provide eligible distributors with up to KSh3 million in short-term stock financing, giving businesses access to working capital to purchase inventory and manage cash-flow needs.
The financing facility has a 30-day tenor and zero interest, with distributors required to pay the principal amount plus an affordable processing fee. The arrangement is structured as a closed-loop financing programme, meaning the funds are dedicated to purchases from Car & General rather than being released as unrestricted cash.
The partnership targets distributors within Car & General’s network that require additional working capital to maintain inventory levels while managing the timing gap between stock purchases and customer payments.
How the I&M Bank and Car & General Financing Works
Under the arrangement, I&M Bank provides the credit, while Car & General serves as the supply-chain partner.
I&M Bank assesses eligible distributors, determines their financing limits, authorizes the credit and manages repayment. Car & General identifies eligible distributors within its network and fulfils inventory orders once financing for the stock purchase has been approved.
The financing is therefore tied directly to procurement from Car & General. Instead of receiving the facility as unrestricted working capital, the distributor uses the approved financing to purchase eligible stock from the company.
The 30-day repayment period is designed around short-term business cash-flow cycles, allowing distributors to finance stock purchases and repay the facility as they convert inventory into sales.
I&M Bank Financing Comes With 0% Interest
A key feature of the I&M Bank and Car & General programme is its nil-interest structure.
Eligible distributors accessing the facility will not pay interest on the amount financed during the 30-day tenor. However, the facility carries a processing fee, meaning the total cost is not limited to the principal amount.
I&M Bank separately offers a 30-day loan product with repayment required within 30 days and loan limits that can reach KSh3 million depending on eligibility and the limit assigned.
The Car & General arrangement has its own distributor-focused structure, with financing specifically directed toward purchases from the company’s supply network.
Who Can Access the Car & General Stock Financing?
The programme is aimed at eligible Car & General distributors, including businesses involved in distributing products supplied through the group’s network.
These may include authorized distributors and wholesale businesses dealing in areas such as machinery, automotive products, electronics and power-related products.
The facility is also intended to help businesses facing temporary cash-flow gaps, particularly where funds are tied up while customers settle outstanding invoices.
Eligibility is subject to the bank’s credit assessment and the distributor’s status within the Car & General network.
How to Apply for the I&M Bank Distributor Financing
Businesses seeking the financing must first qualify as active and recognized distributors within the Car & General network.
I&M Bank will then assess the applicant’s credit profile and business information before determining the available financing limit. The assessment may take into account transaction activity and business financial statements.
Eligible businesses can initiate the assessment by visiting an I&M Bank branch or contacting the bank on 0719 088 000.
I&M Bank’s published customer information also directs customers to its branches and customer-care channels for assistance with its lending products.
