Term Loans

A term loan is a monetary loan that is repaid in regular payments over a set period of time. Term loans usually last between one and ten years.

Features

  • Interest: MPR + Margin
  • Arrangement Fee: 1% Min ZMW 500
  • Commitment Fee: 1% Min ZMW 500
  • Interest above the Limit: MPR +10%
  • Tenor: 365 days (Overdrafts) 1 year to 4 years Max (Loans)
  • Collateral: 100% cash Cover, Landed Property, Corporate Guarantee, Irrevocable domiciliation and assignment of contract proceeds
  • Repayment: Contract performance/discharge

Benefits

  • Access to Funds for working Capital
  • Access to finances for long term investment

Requirements

  • Brief Business Profile
  • Credit Facility Application Letter
  • Audited Accounts for the last three years
  • Latest Management accounts if audit Accounts older than six months
  • Budget/Cash Flow projections for the duration of the facility as well as underlying assumptions
  • Aged Debtors and Creditors Analysis
  • Description of Property being pledged as collateral as well as approximate value
  • If to be secured through third party mortgage, attach consent documents for the use of the security
  • Bank Statements for the last 12 months if not a UBA customer
  • Brief Profiles of Directors and Top 4 Key Management Staff
  • Board Resolution to Borrow

FAQs

  • How long does it take to Process the facility?
  • 14 days, with all documents and required information in place.

Letters of Credit

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Invoice Discounting

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Bonds and Guarantees

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