Bangkok--31 Oct--KASIKORNBANK
KASIKORNBANK is offering loans for contractors of Supalai Group in order to boost liquidity in the growing property market and for the group’s future business expansion. Under the term loan, a credit limit of up to 10 percent of latest annual turnover is provided for two years, with only two days of credit turnaround time.
According to Mr. Vasin Vanichvoranun, KASIKORNBANK Executive Vice President, fast-growing demand for residential assets has caused leading land developers to accelerate expansion of their residential projects including single-detached houses, townhouses and condominiums in Bangkok and surrounding areas, as well as other major cities. The rapid expansion has brought about financial constraints for small- and medium-sized contractors whose capital for the purchase of construction materials is limited.
KBank, thus, has introduced K-SME Construction Credit to provide financial facilities boosting liquidity for contractors in the supply chain of major land developers in order to enable these contractors to handle new residential projects with adequate working capital. KBank and Supalai PCL, forming their first cooperative venture under this product, are offering a clean loan for contractors nationwide chosen by Supalai. These contractors will be offered a maximum credit limit of up to 10 percent of each contractor’s latest annual turnover, or a maximum of 3 million Baht, carrying a MRR-plus-3.0-percent per annum interest rate for two years. The credit turnaround time is only 48 hours, while loans can be drawn down within seven days.
Mr. Atip Bijanonda, Managing Director of Supalai PCL, said the program is designed to support small contractors with a sustainable funding source, enabling them to complete jobs under contract in time, and thus allowing Supalai to hand houses over to customers on schedule. The program is offered in order to support future expansion and help reduce small contractors’ problems with informal “shark loans” and bad debts with financial institutions.
Small contractors are being recruited by the company in unlimited numbers for construction of foundations, infrastructure facilities, houses, landscape and maintenance in all areas of Bangkok Metropolitan Region, and other major cities. Interested contractors can ask for more details by calling 02 725-8888, press 310.
Mr. Vasin added that support from quality partners is essential for sustainable business undertakings amid intense competition. KBank’s focus on enhancing customers’ value chains involves non-financial supports for business expansion. Being a trusted partner for customers, KBank also facilitates flexibility in their business operations with other services including cash management and business advisory services, for customer success in this competitive climate.