Have you received a cheque and need cash instantly? It is possible to obtain instant cash via a service known as cheque discounting. Cheque discounting is a type of unsecured lending where a bank or financial institution advances money on the strength of the uncleared cheque.
A number of Kenyan banks offer this service. To qualify, all banks will insist on you being an account holder. You must also have banked a cheque from the same drawer in the recent past. The drawer must also be a reputable organization or employer to mitigate the risk of the cheque bouncing. The fee charged will typically range from 3 to 10% of the cheque value. Some of the Kenyan banks and Microfinance companies well known for cheque discounting include:
- Family Bank
- Equity Bank
- Diamond Trust
In theory, most local banks are willing to extend credit to loyal customers against uncleared effects. Just call you bank and find out before you rush to change your banker.
There are also a number of brokers and middlemen that offer the cheque discounting in major towns.