Business Overdraft
A line of credit allowing you to draw on your account up to an approved limit. An overdraft is designed to meet your short term or unexpected cash flow needs, as well as providing for everyday transactional needs in the one account.
No regular principal repayments are required. You repay the debit balance when your cash flow permits.
Features:
- Minimum balance - K50,000
- Monthly interest payments
- Variable interest rate
Benefits:
- Convenience of having working capital needs and transactional needs in one account
- Highly flexible facility to meet the needs of your business
- No set regular principal repayments, make repayments as and when your business likes
- Accessed by cheque or Internet
Finance Lease
A fixed term, fixed rate lease to fund the purchase of plant, equipment or vehicles that will be used to generate revenue for your business. The leased asset remains the property of BSP until the residual value is paid out, at which time title is passed to your business.
You will have full use of and access to the asset.
Features:
- Minimum amount - K20,000
- 1 to 5 year term with the flexibility to match to the asset's useful life
- Fixed monthly repayments of principal and interest, paid in advance
- Ability to incorporate insurance and service agreement into lease payments
Benefits:
- Your business is able to purchase revenue generating assets without a significant cash outlay; this allows you to grow their business faster
- Fixed monthly payments throughout the life of the lease allows for certainty of cash flow
- Lease payments for business purposes may be tax deductible*
*BSP recommends you seek independent financial advice regarding your own circumstances
Bridging Loan
A short term loan that allows your business to 'bridge the gap' between outward and inward cash flows.
This may be as a result of the sale of one asset and the purchase of another (usually real estate, but may be other assets)
For example, your business may buy a new asset using a bridging loan and the loan is subsequently paid out by the sale of the existing asset.
Features:
- No Minimum or Maximum amount.
- Term - up to 1 year
- Variable interest rate
Benefits:
- Your business is able to purchase assets now without waiting for the sale of another asset or maturity of an investment
- Only interest repayments are required, no principal repaid until the loan is paid out
Tailored Business Loan
A general purpose term loan designed to meet the medium to long term finance needs of small to large businesses.
Features:
- Minimum balance - K50,000
- Term - 1 to 10 years
- Single or progressive draw-down
- Variable interest rate
Benefits:
- A fit-for-purpose loan to meet the specific needs of your business
Commercial Property Investment Loan
A fixed term finance facility designed for the purchase, development or re-finance of commercial real estate.
Repayments are typically made in regular monthly installments covering principal and interest, serviced primarily by rental income. When the loan is used for development of commercial real estate, it can be drawn down progressively during the construction phase, and only interest repayments made during this period.
Features:
- Minimum amount - K500,000.00
- Term - 1 to 15 years
- Single or progressive draw-down
- Variable interest rate
Benefits:
- Ability to make lump sum principal repayments
- Long term secured finance is one of the cheapest financing options
Residential Property Investment Loan
A term finance facility designed for the purchase, development or re-finance of residential real estate for investment purposes.
When the loan is used for development of residential real estate, it can be drawn down progressively during the build, and only interest repayments made during this period. Any residential building of more than 6 units is to be financed under a Commercial Property Investment Loan.
Features:
- Minimum amount - K50,000
- Term - 25 years
- Single or progressive drawdown
- Variable interest rate
Benefits:
- Ability to make lump sum principal repayments
- Long term secured finance is one of the cheapest financing options
Construction Development Loan
A flexible loan facility designed to meet the needs of larger scale property development projects.
This product is tailored to meet the outward cash flow needs of your project, with predetermined draw downs and principal repayments structured around your project's inward cash flows.
Features:
- Minimum amount - K50,000
- Term - 1 to 15 years
- Progressive draw-down
- Variable interest rate
- Principal repayments can be structured around the inward cash flows of the project (e.g. the sale of properties)
Benefits:
- A flexible facility to meet the needs of the your project; your business has funding as and when required, and makes repayments that are in sync with the project's cash flows
Seasonal Finance Loan
A facility designed to help seasonal businesses (e.g. coffee growers) meet cash flow needs throughout their business cycle. Typically Seasonal Finance Loans will be drawn for several months and used to cover business costs until a crop is harvested, processed, delivered and settled.
Features:
- Minimum amount - K50,000
- Term - up to 12 months
- Progressive draw-down
- Variable interest rate
- Off schedule repayment options available
Benefits:
- Helps ensure access to cash throughout the business cycle
- Repayments can be structured to match irregular cash flows
Insurance Premium Funding
Insurance Premium Funding is a short term loan that will enable your business to pay its annual insurance premiums in easy to manage monthly installments.
Features:
- Minimum Loan Amount - K5, 000
- No Maximum Loan amount
- Term - up to 9 months
- Repayment - Monthly installments paid in advance
- Rate - Competitive rate fixed for the term of the loan
Benefits:
- Retain Capital - Save capital to grow your business
- Smooth Cash Flow - ease cash flow for business operations
- Safety net - protect your business operations from increased affordability of insurance premiums
- Cash flow certainty - Fixed monthly installments over the course of your insurance
- Convenient - Able to pay multiple insurance policies with one easy monthly payment
- Tax Savings - Interest repayments are tax deductible
- Fixed interest rate - protects against changing interest rate
- Simple - Renew or add new policy with no need for additional paperwork. Only copy of premium notice is required
- Affordable - No ongoing loan service fee