Financial contract between two or many parties to establish a commercial enterprise based on capital and labor. The profit is shared at an agreed proportion while any loss is incurred according to the amount of contribution. Each party must contribute a share of capital. Standard financing up to 6 years. House financing up to 10-20 years.
Applications
Fixed Asset Financing
Commonly used in house financing.
Project Financing
For injecting capital into a project.
Asset Backed Financing
Can also be used to finance vehicles and machinery by contributing partially to the amount required.
How it works*
- The customer approaches KCB in need of asset or project support.
- KCB and the customer agree on proportion of contribution towards the required amount to obtain asset or complete project.
- Further, KCB and customer agree on profit-sharing ratio for the period of the contract.
- Depending on the type of partnership contract entered, KCB will share the relevant schedule to the customer with indicated profit and principal installments to be paid.
- At the end of the contract, the customer will own asset or project concerned.
