Trade Finance Loans

With documentary instruments such as letters of credit and bank guarantees, our state of the art, flexible business solutions are customised to enabling you gain quick access to trade credits & helping you make the most of your business endeavours.

PRODUCT DESCRIPTION

These are credit facilities intended to facilitate the trading needs of importers, exporters and local traders. The products under the trade finance offering include;

Letters of Credit

This is a payment undertaking given by the bank, to the overseas/domestic seller/supplier, which is issued on behalf of the importer/buyer. Payment is effected upon presentation of required documents by the seller/supplier within a specified time frame, provided all terms and conditions of the letter of credit are complied with.

Bank Guarantee

This is a written undertaking by the bank at the request of the client in favour of a beneficiary for supplying goods or services. The bank agrees to pay the third party in the event that the client fails to meet his/her obligations.

PRODUCT FEATURES
  1. Maximum repayment period depends on product but not exceeding one year.

Eligibility

  1. Loan tenor: One year
  2. Flexible repayment modes (one-off lump sum payment at a given date, monthly, quarterly, semi-annually and annually or revolving credit line)
  3. Maximum Loan Amount – to be determined by applicant’s repayment capacity.
  4. Maximum Loan to Collateral value is 80% of the Forced Sale Value
  5. Pro forma Invoice from the seller.
  6. Copy of the Import Declaration Form (IDF).
  7. Certificate of Insurance or Marine Insurance Policy if covered locally

For Bank guarantees;

  1. A bond or guarantee application on CIB’s standard for with an indemnity terms and conditions. Should be signed by only the account authorized signatories in accordance with the mandate held with CIB
  2. All formats for the bond or guarantee should be provided by the customer, except when they are statutory Board guarantees or bonds.
  3. A copy of the customer’s contract with the beneficiary (if applicable)
  4. A copy of valid identification documents for the authorized account signatories
  5. A certificate of completion for previously handled projects (performance bond)
  6. A Bank account statement for at least 1 year
  7. Copies of contracts for previously handled projects if available
  8. Memorandum and Articles of association (if updated)
  9. Registered company resolution to borrow
  10. Certificate of incorporation (if updated)
  11. CRB Card
  12. Audited accounts for the last two years
  13. A copy of the acceptable collateral’s ownership document
  14. 2 recent coloured passport size photos for the applicant