Ngao Credit Import Financing: If you have plans to purchase your dream car this year, chances are that you have considered import financing.
Import financing is a short term credit facility meant to finance port charges on behalf of importers of either goods or containers. The aim is to facilitate fast settlement of duty charges at the Kenya Revenue Authority (KRA) and other government bodies to avoid delays. It is basically a short term type of financing provided by a third party.
Why should you consider import financing? Well, whether you’re a business or an individual, import transactions are always a huge burden on your cash flow. This is due to the delays and complications often involved at the port which mean money is paid out long before your car or any other goods you have imported are delivered.
Other burdens include:
- Changing freight rates
- Changing import tariffs which add costs and
- Uncertainty to the transaction
Choosing a good import financing provider to handle all this for you should therefore be a top consideration and it comes with a number of benefits including but not limited to:
- Improved negotiation capacity
- Convenient repayment terms
- Risk mitigations and
- Increased gross profits
If you’re looking to buy a car for example, our Ngao Credit import financing product lets you drive away with your dream car from any of our partners from different countries. We will even finance up to 70% of the total estimated costs and handle all your vehicles’s importation process and clearance at the port. The repayments period is flexible with a period of up to 2 years with Interests as low as 3.5%.
As mentioned in our last blog post, all you will need is a jevic, a Japanese Logbook, an IDF, Invoice, PIN and ID of the Consignee who in this case is you, the client. Of course this is after you decide on your car model, required specs and budget.
Import financing helps you raise capital and pay for your imported vehicles at the port. We have all read reports of KRA seizing vehicles after importers failed to raise the required fees for clearance which also leads to high port storage charges. Import Financing helps importers clear their vehicles within the shortest time possible.
It speeds up the payment cycle which in the end helps you build trust and strong relationships with your overseas suppliers putting your business in a stronger position to negotiate for better terms in the commercial contracts between buyer and seller.