Post-Import Finance

A loan facility given by the bank to an importer (customer) to settle bills of exchange that have matured and the importer (customer) has not mobilized adequate resources to settle the same. Equity Bank therefore allows its client an additional credit period, which is un-disclosed to the seller. The facility is usually granted for bills drawn under an import usance letter of credit.
Benefits

  1. Extended credit period
  2. Lower Lending rate (LIBOR plus a small margin)
  3. Eases cash flow problems
  4. Sales proceeds realised before making payments.

Key Features


  1. The bank charges a fee, commission and interest
  2. The product has a max. tenor of 90 days
  3. The facility needs to be fully secured by asset collateral.

 


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