Overview

A loan is a debt/credit facility provided by one entity (financial institution) to another entity (company or organisation) at an interest rate, and evidenced by a loan contract which specifies, among other things, the principal amount, interest rate, repayment frequency and date of repayment. These loans vary in tenure but are usually for longer than a year.

Features

  • It is a credit agreement,
  • Has a principal amount and interest portion,
  • Has an agreed repayment arrangement i.e monthly, half yearly, or bullet,
  • Has a maturity date

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.