SAF Sterling Business Account

Trade Account

This is a medium of financing designed to meet the needs of clients on a non-interest basis. It is not a loan given on an interest basis by the bank but rather a sale of an asset or commodity at a profit. This is based on the murabaha contract.

Features

  • Suitable for manufacturers who need working capital on a relatively short term basis to finance acquisition of raw materials and consumables
  • It is also available to finance LPOs of reputable companies
  • Import and export transactions of permissible goods are also financed
  • It can also be used to finance fixed assets such as commodities, stock and inventory, machines and equipment, automobiles, furniture, consumer goods
  • Maximum credit 80% of the value of goods
  • Maximum tenor of 180 days
  • No form of interest including compound interest
  • Flexible repayment tenure
  • Fixed profit margin/mark up during the life of the contract


Requirements
  • A clear business plan and up to date records of business operations
  • The clients must demonstrate the ability to meet contract terms and conditions on non-Interest banking principles while showing repayment capability based on the details of expected repayment source/cash flow
  • Adequate and realizable collateral to mitigate the risk of loss
  • Other requirement as specified by the bank