A revolving limit facility provides commercial customers with a loan amount that can be withdrawn, repaid, and redrawn again any number of times, until the contract expires. The loan may be renewed through a written agreement between the borrower and the bank. This method gives businesses the ability to manage their cash needs and provides the liquidity necessary.
Business overdraft borrowing is a form of credit facility that takes place when commercial customers make payments that exceed the available balance in their current accounts. This form of financing is popular amongst customers with varying financial requirements, enabling them to receive additional liquidity and manage any cash flow gaps that may arise.
The commercial loan is a one-time loan granted to clients, typically for the purpose of expanding the business premises or financing fixed assets The loan is repaid in monthly, quarterly, semi-annual, or annual installments as agreed upon with the client. The loan ends once repaid in full.
There is a wide variety of Letters of Guarantee on behalf of customers for specific purposes, including bid bonds, performance bonds, and custom bonds…etc. The bank will pay an agreed amount to the beneficiary against demand should the customer fail to fulfill the transactional obligation within a specified period of time – up to the expiration date of the guarantee.
Bills for Collections are considered a method for settling value of goods and/or services traded through both domestic or international commercial transactions. Documents related to such goods or services, are sent directly to one of the banks operating in the importer’s residence country, to be handed initially to them.
Through the Bills for Collection, Banks can handle the financial and/or commercial documents in accordance with the instructions received in order to obtain payment and/or acceptance or deliver documents against payment and/or against acceptance or deliver documents on other terms and conditions .
Banks issues discounted promissory notes – commercial checks with various maturity dates and creditors. The bank pays the value of the promissory note to the final beneficiary (discounter) prior to its maturity date. The beneficiary then relinquishes the rights to the value of the note and endorses it in favor of the bank. All promissory notes must have a specific concentration ratio and period, with the limit being reviewed annually. Interest and commission are imposed in advance at each discount transaction.