Working Capital

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Working Capital

Sometimes being a contractor requires delivering to your client under such notice even while working on a tight budget. LPO Financing is designed for you to have access to quick fund required to execute, purchase and supply orders from credible companies. This product offering ensures continuity of operation as immediate working capital needs are met.
  • Benefits and Features
  • Requirements
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Features

  • • Designed to prevent cash flow crisis.
  • • Opportunity to boost inventory
  • • Gives access to extra fund to use in the business.
  • • Repayment is tied business to cash flow.
  • • Payments is matched to cash flow pattern.
  • • Complements line of credit.
  • • Provide opportunity to take suppliers’ discount.
  • • Limited personal risk (dependent on business status)
  • • Stable terms and conditions.
  • • Strictly for existing business
  • • Amount is determined by the performance of the business over a period of time.

Requirement

  • • Type of products/Overhead to be financed
  • • Amount involved
  • • Demand level

  • • Registration documents:
    • Business Name (Sole Proprietor/Partnerships)
      •  Certificate of Registration
      •  Form CAC –BN-01
      •  Special Control Unit against Money Laundry (SCUML) Certificate (if applicable)
    • Limited Liability Companies
      • Certificate of Registration
      • Form CAC1.1
      • Memorandum & Article of Association (MEMART)
      • SCUML Certificate (if applicable)
  • • Business/Office Utility Bill (LAWMA, Disco)
  • • Rent Receipt (where applicable)
  • • Tax Identification Number
  • • Board Resolution (application letter)
  • • Financial Records
    •  Audited Financial Statements/Management Accounts
    •  Bank Statements
    •  Source Documents – Sales Book, Receipts etc.

  • • Means of Identification (Regulatory ID Cards)
  • • Bank Verification Number
  • • Tax Identification Number
  • • House Utility Bill (LAWMA etc.)
  • • Passport Photograph
  • • Filled application form
  • • Clean Credit Score
  • • Bank Statement
  • • One Guarantor/Referee
  • . Means of Identification
  • . Passport photograph
  • . Blank Cheque leaves
  • . House Utility

  • • Verification by staff.
  • • Verification by Credit Officer (₦500,000 and above)
  • • Further verification by Head, Credit (₦5,000,000) and above.
  • • Credit Officer understands client’s product cycle and suppliers. Payment is made to creditor or supplier from client’s account.
  • • Personal Guarantee of Business Owner (Sole Proprietors).
  • • Corporate Guarantee (companies) and personal guarantees of directors (if available).
  • • Where mortgage is used as security (value must be equal or more than 110% of the loan as at the time of disbursement). Such must be perfected and easily disposed without any encumbrance.
  • • Remita on Corporate Account and personal account of owner.