This is a flexible funding facility designed to fluctuate with working capital requirements.
Borrowers may overdraw their current accounts up to agreed borrowing limits, with interest calculated on a daily basis on the amount outstanding at close of business each day and payable in arrears at the end of the calendar month.
The facility is supposed to be freely fluctuating.
The overdraft facility maybe granted for a maximum of twelve months but subject to annual review with the objective to maintain, increase, decrease or withdraw/restructure the limit, depending on customer’s needs.
Reductions or repayment terms are to be discussed with the customer. No stipulated minimum balance applies.
Notwithstanding the above the facility is repayable on demand.
This facility is available to established, financially sound sole proprietorships, partnerships and Limited Companies either existing or new with demonstrable ability to generate cash and honour commitments.
- Limited liability companies
- Government Agencies and Departments
- Multinational companies
- Agricultural estates
Features and Business benefit
- An overdraft provides day-to-day financing requirements.
- Interest is paid only on the utilized amount.
- The facility remains available even when not in use.
- Once arranged and approval conditions satisfied, the facility is available immediately and may be used whenever required.
- The customer draws the funds directly from their operating current account through transfers and cheques.
Interest Rates and Fees
- Interest is charged at an agreed rate, usually a margin above the reference rate. The rate is reviewed at the Bank’s discretion.
- Arrangement and appraisal fees – as per standard published tariff
The customer is requested to submit the following documents:
- An application letter with clear indication of amount, purpose and tenor for which facility is required, security proposed, i.e. property, stocks, machinery, cash etc.
- Latest Audited Financial Statements (for Limited Companies) or unaudited financial statements (for Partnerships and Sole Proprietors).
- Latest management accounts where the year-end accounts are over six months old.
- Cash flow projections and budgets covering at least the facility period and projected trading results and statement of financial position.
- A brief commentary on the company’s performance and future business plans.
- Detailed report of the company’s operations and management team
- Business Profile
Frequently Asked Questions
- How does an overdraft work?
An overdraft is a revolving credit facility with a limit marked on your current account, giving you access to extra funds when needed.
- How do you determine the applicable interest rate?
Effective rates are based on each Customers’ risk profile, the form of collateral offered, nature of the business and the duration of the facility.
- How do you determine the qualifying amount?
The overdraft facility amount is aligned to the financing gaps projected by the Customer or monthly sales revenues generated by the business evidenced by the account deposits and the average sales revenues recorded in Financial Statements submitted by the Customer.