You’re limiting the potential of your business if your bank doesn’t offer these five solutions


Have you ever heard of a business having a side hustle? Resilient businesses have such, and some have done it very well.

But the success of that side project largely depends on what bank powers your business. The modern, forward-thinking business must have a way to make its profits bring in another line of income.

Want to know how? Then join me in this breakdown of FIVE things your bank should be able to do for you if you are in business.

1. Ability to make passive income

Pambauka Enterprises is faring pretty well, making a tidy profit every month. Should its owners let the profit rest in the account or should they let the money make more money passively? Your bank needs to have a variety of solutions on making this a reality. Such alternate sources of income were of great help at the height of the Covid-19 pandemic. There were business lines that were completely shut but there were businesses that were able to have their lights on, thanks to this way of investment.

What happens is that the bank helps you buy government bonds or infrastructure bonds. It handles the investments for you, and the returns come to your account. Look at it like a side hustle that doesn’t derail you from focusing on your regular line of business but brings considerable returns periodically.

So, Pambauka Enterprises can say that 20 percent of its profits can go into some investments. In five or so years, the company will be in a good place.

What’s more, a business can invest in such a way that money comes in every month. For instance, the bonds that pay twice a year can be bought in such a way that in every month of the year, there are returns coming in — meaning your whole year is covered in terms of returns on your profits.

There are also other realities your bank should take care of. RosePetal Safaris, for example, may have a number of tourists booking its services six or so months in advance. Rather than struggle with where to take this money before the clients jet in, the investor can leave it to the bank. In the case of Standard Chartered Bank, we create a portfolio for foreign currency bonds such that if the tourists paid in dollars, the payment will remain in dollars till the time you draw it. This helps manage foreign exchange risk.

You can count on Standard Chartered to give you a limitless menu of ways you can invest your profits. The icing on the cake is that we are not limited by borders. We can go for bonds issued in the US, UK, China … anywhere. We are the bank that offers global investment opportunities.

2. Credit tied to investment portfolio

Picture this: XcliX Limited is a company progressing well but it is not very heavy on immovable assets. A time comes when it needs credit to attend to some needs but because assets are the common collateral when taking loans, it faces a hard time getting credit.

Standard Chartered is alive to this reality and we have an arrangement where the investment assets of a business can be used as collateral. We allow clients to pledge their bonds or investments owned by the company. Directors or owners of the company can also pledge their investment assets.

This way, we provide credit for that business that needs cash for investment.

And, unlike a normal credit facility, you will only be repaying the interest per month. Then when you get the principal, you clear part or whole of your debt. You can also re-borrow at any time. And we have priced the credit very competitively; better than any other bank.

3. Insurance protection

We all know that climate change is increasing the risk for SMEs. Unforeseen risks like flooding, fire, among others, can wipe out an entire business. At Standard Chartered Bank, we understand the importance of insurance and have products that can enable a trader to return to business within the shortest time possible. The solutions offered by the bank’s insurance arm include the Work Injury Benefits Act (WIBA) cover, which is a 24-hour cover that can come in when a worker sustains injuries at the workplace. You can also take cover against fires, machinery breakdown, burglary, damage or theft of goods in transit, among others. We understand pretty well why a conversation about the future of a business needs to entail insurance. 

4. Ready advice on investments

You know a certain line of investment is great but you are not too sure. Who should you ask? If Standard Chartered Bank Kenya is your banker, your worries will be addressed promptly because the bank has invested in relationship managers who are certified in the field. Whenever you need guidance on what move to take, you can be sure to get it. What’s more; it’s free of charge.

Standard Chartered also brings experts from outside the country to take our clients through the various options available. When travel was limited by Covid-19, such sessions used to happen through webinars. And we don’t charge clients for attending such sessions.

5. Orderly transfer of business to heirs

Jani and his wife Jeni have been in business for ages. They have seen the business go through ups and downs, through different regimes, through a number of shocks. But it is a time-tested business that has weathered the storm. However, ageing is inevitable and a time has to come when they will let their heirs take over.

Succession is a delicate moment for many businesses and I am sure you know a story of two of where it didn’t go well. But we also have cases where it went perfectly well. Think Rockefeller. Think JP Morgan. Think KFC. The examples abound.

We have realised that if local investments are handed over in such a way that the business is handed down as a single unit rather than a split entity, then there are higher chances of success.

Standard Chartered has been in Kenya since 1911 and it has definitely seen businesses in various phases. We have also curated the best succession practices that can ensure viability of a business for generations to come.

And even if the heirs decide to pursue a newer line of business, we will be there to finance them. That’s why we say we are here for good.

Does your bank do all that? If it doesn’t, there is a lot of locked potential.

Yours sincerely,

Paul Njoki,
Head of Wealth Management,
Standard Chartered Bank Kenya.

Email: [email protected]
Phone: +254203293393/4