BUSINESS BANKING LOANS
These are instruments that entail Sterling Bank substituting its credit worthiness for that of its client and it is done at the request of the bank’s client to the beneficiary. They are undertakings by the Bank, that its customer will carry out the terms of a contract, failing which and upon presentation of predetermined documents, the Bank, to the extent of its undertaking, will compensate the beneficiary. Other forms of guarantees include bid bonds and advance payment guarantees. It is available to customers with contracts from government agencies, corporates etc.
The Sterling Bank Import Finance Facility provides financing to importers specifically towards the importation of industrial goods, raw materials and consumer products.
- It is available to corporate customers, multilateral corporations and companies.
- Tenor usually ranges from 30 to 180 days per tranche and the ultimate maturity is usually for one year or less.
- A 20% minimum equity contribution is required from the customer
- The goods to be imported must be insured under a Clause “A” Insurance from a reputable company
Invoice Discount Facility (IDF): This is a specialized revolving line of credit, extended to fund accounts receivable and accommodate the customer’s continuous need for working capital pending receipt of payments.
- It is available to rapidly growing companies with corporate accounts in Sterling Bank and whose growth typically requires constant cash outlay
- The tenor is short and self-liquidating, usually not more than 90 days
- The borrower draws against the line as new accounts receivable are created
- Disbursement is limited to a maximum of 80% of the invoices
- Repayment is from collection of the accounts receivable on a continuous basis
LETTER OF CREDIT
A letter of credit is an instrument guaranteed by a Bank that enables importers and exporters exchange goods on credit. Sterling Bank, acting at the request and on the instructions of their customer (the applicant) or on its own behalf:
- Makes payments to or to the order of a 3rd party (the beneficiary) or is to accept or pay bills of exchange (draft) drawn by the beneficiary, or
- Authorizes another bank to effect such payment or to accept and pay such bills of exchange (drafts) or
- Authorizes another bank to negotiate against stipulated documents provided that terms and conditions of the credit are complied with.
Their overdraft facility provides financing that helps you meet your day to day operational and unplanned expenses. They can help you bridge your working capital gaps.
- This product is available to current account holders
- The borrower is permitted to overdraw his/her current account up to, but not exceeding, the approved limit of the overdraft facility
- You can conveniently increase or decrease your limit at any point in time
- Maximum tenor of twelve (12) months from date of offer, acceptance or disbursement; whichever comes first
- They offer competitive pricing.
At Sterling Bank, they are eager to go into a long term partnership with you and provide the finances you need to bring your project to reality. Take your business proposal to them and they would finance it.
- This product is available to corporate customers with viable projects.
- You can enjoy financing up to the Bank’s single obligor limit with tenor as high as ten (10) years
- Their pricing is competitive and subject to negotiation
- The cash flow of the project must be sufficient to liquidate the facility over its life time