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Lending products and services include: Short and Long-Term
funding which include
Term Loans
Revolving Credit
Overdraft
Bonds and Guarantees
Stock Replacement Facility/Import Finance
Loan Syndication
Bills Discounting
TERM LOANS
Term loans for large credit support. This includes
non-revolving facilities where the tenure extends beyond one
year from the date of approval. Term loans may be given to
finance special capital projects of a borrower's expansion
programme (e.g equipment leasing, new technology acquisition
and asset replacement). Repayments are tied to the cash
generated from the project.
REVOLVING CREDITS
Revolving Credits which include short-term facilities
where the customer must repay within a fixed period of time
(usually between 30 and180 days); and can renew such
facilities based on authorized limits. Revolving credits may
be given to organizations in stable industries and include
product lines such as bridging finance, contractor
financing, distributor financing and commercial papers (CPs).
CPs are unsecured short-term promissory notes issued
directly to the public through an issuing house and may be
issued to corporate bodies with high risk rating.
OVERDRAFT
This facility is usually provided to assist a customer in
meeting its working capital requirements. Important
considerations that influence the determination of
authorized limits for this facility include
- Profitability of business
- Ability of the company to complete its asset
conversion cycle
- Exposure to other banks.
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Other important considerations for renewal purposes
include
- Account turnover
- Extent of utilization of facilities
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BONDS & GUARANTEES
Bonds and Guarantees include guarantees issued by the
bank to third parties on behalf of a customer. These are
undertakings by the bank, made at the request of a customer
to a beneficiary that our customer will carry out the terms
of a contract with a beneficiary. They may be in the form of
Bid Bonds, Customs & Excise Bonds, Advance Payment
Guarantees, Performance Bonds, etc. These lines are
contingent liabilities and are available subject to
satisfactory risk rating.
STOCK REPLACEMENT FACILITY/IMPORT FINANCE
Foreign exchange to finance the importation of the
customer's raw materials is purchased through the Bank for
the establishment of letters of credit. This is done by way
of commercial papers.
LOAN SYNDICATION
When a corporate customer seeks a considerable capital
outlay that may be beyond an individual bank, the Bank can
work with a consortium to pool resources.
BILLS DISCOUNTING
This is a re-financing arrangement packaged for the
sustenance of trade-creditor customers. This can be
customised in respect of all negotiable instruments that
show evidence of title to goods or of being owed.
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