Offers financing solutions to contractors to facilitate implementation of contracts until full completion.
|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
- Tailor made to meet the borrowers need
- Quick facility processing