WORKING CAPITAL PRODUCTS
Besides asset financing, your business needs working capital for day-to-day running of your business. There are various products offered by financial institutions for this purpose to help you run your business and these include:
To meet working capital needs such as payment of salaries, purchases, utilities etc.
- Made available via current account
- Interest is calculated on a daily basis on outstanding balance at the end of each business day
- A commitment fee is charged on the unutilized portion of the facility
Flexibility in funds management provided the facilities are properly conducted
and the business continues to operate satisfactorily.
Short-term in nature to meet short-term working capital requirements.
- A form of loan granted for a fixed period
- Convenient for companies with good financial
- Drawdown by means of letter from the SME to the financial institution stating the period of the loan required
- Lower financing costs
- Continuous availability of funds
To obtain short term financing of trade debts (sale of goods to customers on credit terms).
Financial institution purchases client’s trade invoices at a discount from the face value of the invoices and provides cash advances for business purposes.
- Quick and easy cash advances
- No collateral required
- Able to sell on more competitive terms to credit customers