It is a credit agreement made between a corporate and bank that permits the account holder to use or withdraw more than they have in their account within a specified limit for a defined period of time (usually a year or less).
- It is a credit arrangement.
- It has an agreed limit.
- It has an agreed tenure.
Our current indicative terms and pricing are as follows:
- Maximum Tenor: 360 days
- Interest Rate: 12 – 18% per annum (negotiable)
- Facility Fee: 3-5% flat (recovered upfront on approval of facility)
What you need to apply
- Application Letter
- Must clearly state the facility amount required e.g. Loan/Overdraft for USD 10,000.00.
- Specify tenor/period of the facility.
- Purpose of the facility i.e. working capital requirements, order finance etc.
- Provide source of repayment.
- Company Profile
- Company documents i.e. Certificate of Incorporation – CR14, CR6 or Constitution.
- Shareholding Structure and percentage shareholding
- Related firms – provide family tree
- Lines of business and comment on your market share, major clients
- Competitor analysis
- Directorship & Senior Management Profiles; including ages, academic & professional qualifications, occupation and work experience/history. Provide CVs for key management personnel.
- Latest and valid Tax Clearance certificate
- Latest Financials
- Latest management accounts
- Audited financial statements for the past two years
- Cashflow Projection covering the tenor of the facility requested
- Aged Creditors & Debtors Analysis, if any
- Confirmed orders
- Pro-forma Invoices (for intended expenses)
- Proposed security to cover the borrowing (preferably title deeds)
- Valuation of the proposed security – to be done by professional valuers
- Banking Details
- Current banking arrangements with other banks, including existing Credit Facilities, (Bank, Branch, Account Number, Branch/Relationship Manager, time with the Bank). Provide statements for the past six months
- Your CBZ Account Number and Branch
- Geological Reports showing the availability of resource.