NCBA Contract Financing offers financing of up to 70% of the contract value to contractors to facilitate implementation of contracts until full completion.
- Maximum tenor of up to 180 days.
- Flexible security options as per collaterals defined in the Group Credit Risk Policy.
- Repayment is in 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.
Collateral Finance Arrangement (CFA)
NCBA can offer Oil Marketing Companies financing as they await payment from the sale of their petroleum products. This is a structured finance solution where the bank finances part of the purchase price of the petroleum product and holds the stock as security to be released as the stocks are sold and payment received.
This is a product tailored to provide the financing required that will allow you to adequately service contracts. NCBA’s LPO Financing is specially designed for contractors and vendors to reputable organisations with undoubted payment records and for those contractors and vendors with a proven track record of delivering on their contracts. The bank provides the capital required to execute work orders and local purchase orders. It ensures continuity of operations as immediate working capital needs are met.
This solution is suited for companies who distribute fast-moving consumer goods or traded items. The financing allows you to purchase stock from your supplier and bridges the liquidity gap until you receive funds from the sale of the goods. NCBA’s distributor finance solutions offer you access to funds with flexible repayment structures. You are assured a steady source of finance with credit limits tailored to your business needs.
Fulfill payments to your suppliers with our reverse factoring solutions. The Bank will interpose itself between your company and your suppliers and commit to pay your company's invoices to your suppliers at an accelerated rate in exchange for a discount. We will purchase receivables due to both your domestic and foreign suppliers at 100% of the outstanding Invoice amount less the finance cost on the strength of your future payment obligations which would be assigned to the bank.
Free tied up funds from your unpaid invoices to ensure business cash flow while maintaining control over the collection of the outstanding receivables. This financing solution is ideal for suppliers to businesses and institutions with strong credit standings and reliable payment cycles.Our Invoice Discounting terms are negotiable and offer payment periods of up to 180 days.
Our avalisation of bills provides your suppliers with a guarantee that payment of a bill of exchange accepted by you for goods delivered will be honoured by the bank on maturity. This form of credit enhancement can improve the relationship with your suppliers, and could allow you to seek discounts and extended payment terms.
Value Chain Finance Loans
Obtain funding structured to suit your company’s trading cycle that improves your working capital and cashflow. We help you fund trade transactions with loans covering, but not limited to, Invoice Discounting, Distributor Finance, Reverse Factoring and LPO financing.
Standby Letters of Credit
A standby letter of credit is a bank's commitment of payment to a third party in the event that the bank's client defaults on an agreement. The bank places its confidence in your business by issuing SBLCs to your trading partners in support of your obligations to them both locally, internationally and in all major currencies.
Bank Guarantees, Bonds and Indemnities
Tender for business which you might have previously considered out of reach, improve the terms of your tenders and negotiate better terms on contracts. We offer the following types of bonds and guarantees:
- Bid bonds
- Performance bonds
- Customs bonds
- Advance payment guarantees
- Retention bonds
- Immigration bonds
- Shipping guarantees
If your company is involved in international trade, then documentary collections offers an efficient way to handle your transactions. These are payment mechanisms that simplify the administration of commercial trading transactions and safeguard your title to goods. They boost trading relationships by reassuring the exporter of due payment. NCBA is used by importers and exporters to handle all the documents either against payment, against acceptance or on other terms and conditions as agreed between buyer (importer) and seller (exporter).
Letters of Credit
Let us back you up by making your local and international transactions easier by issuing letters of credit to your suppliers guaranteeing that payment for goods and services will be honoured fully and on time by the bank upon presentation by the beneficiary of stated documents that gives you comfort with respect to your suppliers’ fulfilment of their obligations in the underlying contracts. This product is specially tailored for those in export and import trade but can also be utilised for domestic trade transactions. Not only does a letter of credit enhance your creditworthiness from the supplier’s perspective but it helps build confidence for more flexible and extended payment terms between the buyer and the seller.
Short Term Trade Loans
NCBA offers various working capital loans designed to provide you relief when in urgent need of a cash injection. They are typically paid back over a period less than a year. They include, but are not limited to:
- Post-import finance loans
- Pre-shipment finance loans
- Stock loans
- Warehouse finance loans
Sounds like a deal?