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