Facility offered by the Bank to the customer to purchase inputs for the production process of goods which are for onward sale/export. The facility helps to generate additional working capital to enable client meet production demands and it must be backed by an export LC or a confirmed export order.
- Provides additional working capital with flexible security requirements
- Cheaper than other borrowing facilities and can be used on a revolving basis
- Enables taking of very large orders
- The product has a maximum tenor of 90 days for confirmed export order or up to 180 days for export LC.
- The facility needs to be fully secured by asset collateral. Flexibility will be allowed when financing is supported by a letter of credit
- The facility is self-liquidating.
- The bank charges appraisal fee and interest.