APPLICATION GUIDELINES
Policy Guidelines The Board has the sole authority to generate policy guidelines on lending without any outside restrictions subject to the Bank of Zambia supervision.

All applications for facilities should be in writing covering the following:

1. Background information on the applicant to include:

Company name and ownership details

 

Names of shareholders and directors

 

Share capital

 

Full description of the business activities

 

History of the company highlighting major development, product mix and other relevant information

2. Requested facility. This should include:

Amount

 

Type of facility

 

Purpose and tenor

 

Draw-down and repayment plan

3. Key Industry information.

The information under this heading should include

Key industry players and assessment of own performance and standing compared to competitors.

 

Competitive advantage vis-à-vis other players highlighting details of critical success factors

 

List of major competitors and their market share

 

Company’s market size and share

 

List of major buyers and suppliers and the terms of trade

 

Key risks and how they are mitigated

 

Business trade cycle

 

Marketing strategy

4. Management and employees’ information.

Management structure

 

Key personnel, their qualifications and experience

5. Financial information to include the following:

Audited financial statements for the last 3 years

 

Management accounts since the last financial year-end

 

Budgets (profit and loss budget and cashflow projections and underlying assumptions) for the duration of the loan

 

Debtors and creditors together with age analysis

 

Explanations should be given for any material negative or positive variances in the trading and financial information

6. Security being offered for the facility

Indicate type

 

If property, valuation reports to be provided

7. Present bankers.

Full details to be provided on the following:

Name of bankers

 

Facility enjoyed if any

 

Security given where relevant

 

Status report

 

Copies of bank statements for the last 12 months

FURTHER REQUIREMENTS

The following information is required for all applications for Leasing Finance, Trade Finance, Project Finance, Bonds and Guarantees and Business Advisory Services:-

Company name and profile

 

Names of Shareholders / Directors and copies of their identities. This should include the Directors' track record and resumes

 

Copies of Certificate of Incorporation together with copy of Memorandum & Articles of Association

 

Copy of VAT and Tax Payers Identification Number (TPIN) Certificates

 

Audited Financial Statements for the past three years and latest Management Accounts

 

Bank and Trade / Supplier references, which the Bank will be authorised to contact for verification of details

Furthermore the following additional information is required for application of the facilities stated above:

1.  LEASING

• An overview of the lease requirements describing the substance and viability of the lease application to warrant the Bank’s support

• A complete business plan with profit and cash flow projections

2.  TRADE FINANCE

• An overview of the trade finance requirements describing the substance and viability of the application to warrant the Bank’s support

• Up to date profit and cash flow projections

• Any information in regard to other borrowings, security given etc

3.  PROJECT FINANCE FACILITY

• A complete feasibility study (business plan) with profit and cash flow projections

• Any information in regard to other borrowings, security given etc

4.  BONDS AND GUARANTEES

• An overview of the facility required describing the substance and viability of the application to warrant the Bank’s support

• Any information in regard to other borrowings, security given etc

5.  BUSINESS ADVISORY SERVICES

• Type and details of service required