PRODUCT PURPOSE/DESCRIPTION
Offers financing solutions to contractors to facilitate implementation of contracts until full completion.
PRODUCT FEATURES
| Loan amount | Up to 70% of the contract value |
| Security | As per collaterals defined in the Bank Credit Risk Policy |
| Maximum tenor | Up to 180 days |
| Method of Repayment | Equal monthly instalments of principal and interest or monthly payment of interest and bullet payment of principal and interest at the end of the facility tenor. |
| Documentation | • Borrower must be the main contractor or nominated sub-contractor • The tenor of the contract to be not more than 24 months • Client commitment to the project should not be less than 30% • Borrower must have sound financing standing to meet contractual obligation • Borrower must have been in the same line of business for not less than 3 years • Sponsors include multinationals, local corporates, Non-Governmental Organizations and Government agencies and should be approved by the Bank. • The borrower to show performance in at least 3 past contracts of similar complexity and nature. • Not more than 50% financing on pre-implementation and 50% on post- implementation. • Signed Contractual document should be submitted • Confirmation letter from the sponsor giving an indication of contract awarded and that payments will be paid directly to the borrower’ account with Horizon Bank • Certificates for payments to be approved by the sponsor before disbursements • Certification of completion to be provided where applicable (part completion financing) • Deed of Assignments of Benefits under contract in favor of the Bank |
BENEFITS
- Tailor made to meet the borrowers need
- Quick facility processing