This product is designed to meet the working capital needs of contractors and vendors of reputable organizations. The product is for clients who are awarded tenders to supply goods and services. The Bank can study their contract/orders and consider advances against the said contract/orders or the appropriate amount of outstanding due for payment.
The product also provides financing for outstanding receivables.
They are a short-term and are given for a maximum period of 3 months (60 days).
Features & Benefits:-
- Funds are provided for the purposes of expanding businesses by borrowing against LPOs and Receivables.
- Maximum to be financed is 100% of the cost of LPO
- Short term loan (Maximum of 60 days proposed)
- Disbursement will be made directly to vendors after confirmation- Bank shall only finance LPO from blue chip companies or companies registered with the Registrar General’s Department.
- Loan must be backed by collaterals
- Loan can be revolving
- Local Purchase Order from the issuing company (Registered/Blue Chip Company)
- Formal Application Letter from the customer
- Company Profile and Registration Documents
- A collateral and guarantor.
- Private Individuals
- Business Men and Women
- Helps the customer have access to working capital
- Helps customers finance their LPOs
- Helps customers meet supply contracts or orders within a given time frame
- Helps the customer improve cash flow for company’s operations.
- Loan is based on value of the Purchase Order
- Interest Rate is competitive.