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.
- The bank charges a fee, commission and interest
- The product has a max. tenor of 90 days
- The facility needs to be fully secured by asset collateral.
- Extended credit period
- Lower Lending rate (LIBOR plus a small margin)
- Eases cash flow problems
- Sales proceeds realised before making payments.