SHORT TERM WORKING CAPITAL

Product Description
A short-term facility, up to 12 months, to finance the day-to-day trading requirements of a business.

Sectors

All sectors are considered.

Purpose

The Bank will assist with working capital finance for the following reasons;

o To increase stock levels to fulfill a specific large order.

o To increase stock levels in anticipation of an increase in raw material prices.

o To increase stock levels in anticipation of seasonal peak demand.

Terms and conditions

Amount

Minimum amount US$20,000 or the kwacha equivalent

Tenure

Maximum period 12 months.

Interest charges and fees

o Foreign currency facility, interest to be based on cost of funds plus margin of up to 5%.

o Local currency facility, 273 days Treasury Bill Rate plus a margin of up to 10%.

o Appraisal fee 1% non-refundable.

o Facility fee 1%.

Security

The Bank will expect one or a combination of the following;

o First legal mortgage on property.

o Debenture on floating assets.

Directors’ personal guarantees.