Equity, a prominent financial institution, has recently announced a strategic collaboration with Crown Healthcare, aimed at facilitating the acquisition of medical equipment for small and medium-sized enterprises (SMEs) operating in the medical sector. This partnership entails Equity's provision of equipment financing, trade finance solutions, working capital facilities, as well as customized and competitive terms for the bank's products and services.
During a signing ceremony held in Nairobi, David Nyamu, the Director of Marketing at Equity, expressed the bank's strong commitment to supporting healthcare organizations in their access to essential medical equipment, particularly in light of the ongoing Covid-19 pandemic.
"In recent times, the significance of the healthcare sector in delivering vital services to the community has become increasingly evident. Through the signing of this memorandum of understanding, our objective is to empower SMEs in the healthcare sector by enabling them to access the comprehensive range of medical equipment provided by Crown Healthcare," stated Nyamu.
Under the equipment financing facility, Equity will extend credit through equipment finance or hire purchase, purchase of receivables, and import-based equipment finance, encompassing both new and used equipment. The financing will cover up to 90% of the asset cost, with a repayment period of up to 5 years. Additionally, a grace period of three months will be available upon request to facilitate setup and testing.
Shilen Thakerar, Chairman of the Crown Healthcare Group, emphasized the timeliness of the memorandum, highlighting Crown's dominant 70% market share in the provision of dialysis equipment.
"We have made substantial investments in delivering exemplary services and supplying lab dialysis and radiology equipment throughout Kenya and East Africa. These machines come with a substantial price tag, and partnering with a financially robust institution like Equity signifies that we have made a prudent decision for the benefit of our esteemed customers," explained Thakerar.
Equity has also pledged to provide trade finance solutions, including Letters of Credit, Post Import Finance, and Guarantees, to facilitate the importation of various equipment. Moreover, the bank will offer overdraft and short-term working capital loans at competitive terms for organizations in need of immediate financial assistance.
To facilitate the partnership, Equity has already begun opening accounts for Crown Healthcare customers, allowing them to capitalize on the numerous benefits provided through this collaboration. These benefits include access to other banking products such as office space financing or purchase of office buildings, construction loans or development loans, motor vehicle and ambulance financing, invoice discounting, insurance products and services, and a wide range of payment channels, including POS machines and Eazzypay. Furthermore, customers will have access to a liquidity management solution known as EazzyBiz.