| Borrowers
Equipment eligible
Issuance of Bank Guarantee
Financial Information Required
Assistance for Financial Guarantee |
Payment
Insurance
Approval
Cycle
Transaction Terms
Language of Transaction |
| BORROWERS
/ LESSEES |
|
Loans
requests are welcome from:
-
National
governmentsstates, states, region, provinces, cities and government developing agencies)
- Foreign
corporations, partnerships, entrepreneurs and any other legal entity
As
far as they can provide the security and other collateral/security
needed for the transaction as here explained.
|
|
|
| EQUIPMENT
ELIGIBLE FOR TRANSACTION |
|
All capital equipment,
including engineering services, delivery charges, services contracts, warranty
agreements and miscellaneous charges.
Transactions can be either loans or leases depending on the country of establishment
and other circumstances of the transaction |
| |
| FINANCIAL
INFORMATION REQUIRED |
|
Click
here
for
"Funding Request" formulation
sample
Click
here
for
"Executive Summary" sample
|
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| ISSUANCE
OF BANK GUARANTEE |
|
Borrower's Bank in chage of the transaction to provide a Letter
of Intent to Guarantee - as
a Standby Letter of Credit, understanding that said Letter of Intent to
Guarantee is not a formal guarantee at the time of introduction. It is just a Pre-Advice
to issue a guarantee covering the loan amount, and annual interests.
The
formal guarantee would be issued when Dr. Quenum & Associates' partner(s)
(the lending bank) first sends a communication to the guarantor bank confirming
release of funds against receipt of a formal guarantee
(as Standby Letter of Credit).
Once
borrower's bank issues to Dr. Quenum & Associates' funding partner(s) (the
lending bank) a Letter of Intent, the lending bank would start processing the
loan request, put funds together, and confirm to the guarantor bank that it is
ready to release the funds against receipt of the formal guarantee.
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| LANGUAGE
OF TRANSACTION |
|
English
is the transaction language and documents submitted should be in English or translated
into English, certified conform to the originals (which
should also be forwarded)
by a legal certification authority.
Final transaction
documents will be delivered in English.
Borrowers / Lessee will have a suitable period of time prior to closing for inspection
of the documents. |
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| TRANSACTION
TERMS |
|
1
- Transaction period
: Term of loan depends
on the country risks. The greater is the stability, the longer is the term granted.
It may range from 24 month
to 240 month depending on the kind of equipment leased and the circumstances of
individual transaction.
2 - Interest rate :
The interest rate is based on LIBOR (London Interbank Offered Rate) plus
a "margin" for the country risk
LIBOR is the base rate within
the banking communities to lend money to borrowers. A margin is added on top of
LIBOR. LIBOR rate fluctuates from time to time based on market movement.
Margin rate depends on the country risks which means political and economical
stability of a borrower/country. The more stable is a country, the less is the
risk, so, the lower is the margin added to LIBOR.
LIBOR and
margin put together become the interest rate charged to a borrower.
|
Click
here for "Funding Request" formulation
sample |
| TOP |
| PAYMENT
|
|
All
transaction payments both payable and receivable are in United States dollars
or otherwise.stated.
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| INSURANCE
|
|
Borrower / lessee
shall insure, with a company approved by the lender, no less than 100% of the
value of the equipment as determined by the lender, for the entire term / period
of the transaction. |
| TOP |
| APPROVAL
CYCLE |
|
Transaction
are usually completed and funded within four weeks to 6-9 months span of time
depending on the completeness of the information and other documentation submitted
and the complexity of the transaction. Click
here for loan research general procedure |
|
Click here for "Funding Request" formulation
sample
Click
here for "Executive Summary" sample
Click
here to review security and collaterals
accepted by lending sources.
The
copy of security / collateral sent to BusinessAfrica's designated
financing-source must be clear and readable copy of first generation. |
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