Overview

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).

Features

  • It is a credit arrangement.
  • It has an agreed limit.
  • It has an agreed tenure.

Our current indicative terms and pricing are as follows:

  1. Maximum Tenor: 360 days
  2. Interest Rate: 12 – 18% per annum (negotiable)
  3. Facility Fee: 3-5% flat (recovered upfront on approval of facility)

Who qualifies?

  • Corporate clients whose credit requirements are at least $500,000 and are customers of the Bank who have had active accounts for at least 6 months.

What you need to apply

  • Application Letter
    1. Must clearly state the facility amount required e.g. Loan/Overdraft for USD 10,000.00.
    2. Specify tenor/period of the facility.
    3. Purpose of the facility i.e. working capital requirements, order finance etc.
    4. Provide source of repayment.
  • Company Profile
    1. Company documents i.e. Certificate of Incorporation – CR14, CR6 or Constitution.
    2. Shareholding Structure and percentage shareholding
    3. Related firms – provide family tree
    4. Lines of business and comment on your market share, major clients
    5. Suppliers
    6. Competitor analysis
    7. Directorship & Senior Management Profiles; including ages, academic & professional qualifications, occupation and work experience/history. Provide CVs for key management personnel.
    8. Latest and valid Tax Clearance certificate
  • Latest Financials
    1. Latest management accounts
    2. Audited financial statements for the past two years
    3. Cashflow Projection covering the tenor of the facility requested
    4. Aged Creditors & Debtors Analysis, if any
    5. Confirmed orders
    6. Pro-forma Invoices (for intended expenses)
  • Security
    1. Proposed security to cover the borrowing (preferably title deeds)
    2. Valuation of the proposed security – to be done by professional valuers
  • Banking Details
    1. 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
    2. Your CBZ Account Number and Branch
    3. Geological Reports showing the availability of resource.