Last Updated on July 1, 2024 by admin
The demand of capital by small and medium scale business to expand or invest in their business is on the increase, getting bank loan can be complicated Starting the bank loan application process without understanding the process that can cause your loan request to be rejected.
searching for lenders that keep fees to a minimum and offer repayment terms that fit your needs you should consider sterling bank business loan to start, expand or invest in your business
They offer term loan to fit your business needs. Whether you are expanding, purchasing equipment or needing extra funds, they offer secured loans with great rates and convenient payment terms for any business.
Entrepreneur should Consider the amount they need based on what their plan to do with the money because loan isn’t free money you will eventually have to pay the borrowed amount plus interest back to the bank .
Sterling bank in offer Guarantees loan,Import Finance,Invoice Discount,Letter of Credit,Project Finance and Overdraft to business owner depend on the kind of loan that suit your demand
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We are going to take a look at various loan package offer by sterling bank depend on what you plan to do with the money.Before you get a loan, take a look at how the loan works. How will you repay it—monthly or all at once? What are the interest costs? Do you have to repay a certain way.
Types of Sterling bank business loan
Guarantees
This is bid bonds and advance payment guarantees that is available to customer who is to carry out the terms of a contract from government agencies, corporate etc. 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.
Import Finance
Sterling Bank Import Finance Facility provides financing to importers specifically towards the importation of industrial goods, raw materials and consumer products and It is available to corporate customers, multilateral corporations and companies.
The goods to be imported must be insured under a Clause “A” Insurance from a reputable company.Tenor usually ranges from 30 to 180 days per tranche and the ultimate maturity is usually for one year or less with 20% minimum equity contribution is required from the customer.
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Invoice Discount
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
This instrument guaranteed importers and exporters exchange goods on credit,however, sterling bank act at the request and on the instructions of customer.
Authorizes another bank to negotiate against stipulated documents provided that terms and conditions of the credit are complied with.
The bank 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)
Overdraft
Overdraft is available to current account holders with permitted to overdraw his/her current account up to, but not exceeding, the approved limit of the overdraft facility
This help customers meet their day to day operational and unplanned expenses with Maximum tenor of twelve (12) months from date of offer, acceptance or disbursement; whichever comes first
Sterling bank Customers can conveniently increase or decrease their limit at any point in time
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Project Finance
This kind of sterling bank loan provide the finances you need to bring your project to reality and you enjoy financing up to the Bank’s single obligor limit with tenor as high as ten (10) years
However, The cash flow of the project must be sufficient to liquidate the facility over its life time
How to apply for Sterling bank business loan
walk into any sterling bank office or call your account officer to get your loan or get further inquiry.
