How SMES Can Benefit From FirstBank’s Products, Business Finance

By Cami Ezenwa

It is often said that without business finance, even the most entrepreneurial ideas are not worth the pieces of papers on which they are enunciated.

The truism of the above assertion lies in the fact that virtually every item of importance in setting up and running an enterprise is dependent on availability of capital. This makes business finance the live wire of enterprises.

The challenge however, especially in Nigeria, is how SMEs Thrift and Cooperative Organisations, Groups, and even individuals can access business Finance from financial institutions.

READ ALSO: How To Obtain Business Capital From IFC

The Eagle Newsmedia business intelligence findings show that FirstBank of Nigeria PLC has a bouquet of business finance products that can answer to the varying needs of clients, and has decided to unveil them for the mutual benefit of both the bank and its customers.

First Bank’s Basket of SMEs Business Finance Options: Loans

According to FirstBank: “We believe that Small and Medium Scale Enterprises (SMEs) are key drivers of the economy, which is why we have designed these loans facilities to support the growth of your business with required funds”.

1. Import Finance

The product is targeted at FirstBank customers who are involved in the importation of raw materials or finished goods.

Features:

• Credit facilities are made available via Letters of Credits, Bills for Collections etc.
• Short tenor facilities, collaterised by Lien on shipping documents.
• Equity contribution is required.

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Benefits

• Ease of access to credit facilities for importation.
• Customer can take advantage of volume discounts and enlarged sales.

Requirements

• KYC documentation in place.
• Form M.
• Proforma Invoice.
• Insurance.
• Risk Assesment Report (RAR).

• Oil and Gas Contract Finance

The product is designed to meet the funding requirements of indigenous oil and gas companies who are either customers or prospects of FirstBank

The product is designed to meet the funding requirements of indigenous oil and gas companies who are either customers or prospects of FirstBank.

Features

• It is self-liquidating: The facility is contingent upon receipt of contract proceeds after successful completion of milestone.
• The facility is short tenured: The facility tenure is mostly between 90-360 days depending on the contract being executed.
• The bank provides up to 70% of cost of contract execution and not cost of contract value.
• The product has essentially domiciliation of contract proceeds as the sole comfort except where facility is in excess of N50million for Project Finance which must be secured with tangible collateral.

Requirement

• Contract Documents.
• Financial statement (audited).
• Evidence of past job(s) executed (copies of payment advice).
• Customer’s application Letter.

• Cement Distributorship Finance

The product provides flexible short term loan to meet the working capital needs of the distributors of major manufacturing cement companies

Features:

• Competitive pricing.
• Flexible collateral structure.
• Flexible tenor.

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Requirements

• KYC documentation in place.
• Account opening requirements.
• Loan processing forms and documentations.

• FMCG Key Distributorship Finance

This product is designed to provide structured finance to distributors of FMCG principals to meet working capital needs.

Features

• Competitive Pricing
• Flexible Collateral Structure
• Flexible Tenor

Benefits

Opportunity to increase volume of business and meet targets set by principals.

Documents required

• KYC documentation
• Account opening requirements
• Loan processing forms and documentations
• Valid distributorship letter

5. OTHERS

-Petroleum dealership finance

-Secured term loans

-Commercial mortgage