Applicants for trade finance credit are required to provide complete and accurate information on the following aspects on which applicants are encouraged to give as much detail as possible.
1. Background information about the borrower:
a) Name, domicile and ownership of the applicant company.
b) Names of shareholders and directors.
c) Nominal and paid-up capital.
d) Legal status of the company.
e) Line of business (give a full description of the business activities).
f) Brief history of the company highlighting major developments in the methods of trade, product mix and other factors central to the performance of the company.
2. Details of the required facility:
b) Type of credit.
c) Purpose of facility (give details of the end-use of the facility requested).
d) Tenor of facility.
e) Schedule of drawdowns.
3. Key Industry Dynamics:
a) The borrower should highlight key industry players as well as provide a comparison of its performance and standing in the industry compared with its competitors.
b) Information on the market shares of the various key industry players should be provided.
c) The borrower’s competitive advantages vis-à-vis the other players giving details of the critical success factors.
d) List of major competitors and their market share.
e) Market share of the applicant company.
f) List of major buyers with details of the selling terms.
g) List of major suppliers with details of the terms of purchase.
h) Key industry risks as well as how the borrower mitigates them.
i) Description of the Trade cycle of the business.
j) Seasonality of the operation giving details of peak and slack seasons.
a) A detailed organization chart.
b) Information on the key personnel management, departmental / divisional managers and line managers which should include, the name, age, educational background, years of experience, line of operations and posts held, present position and description of duties & responsibilities.
5. Management Information Systems: details of the planning, controlling & monitoring systems, which have been put in place.
6. Financial information:
a) Audited financial statements with audit reports for the past three (3) years and related supporting data. Provisional statements will be required where audited accounts are not available. Explanation needs to be given for any material negative or positive variances in the financial statements.
b) Cash flow projections as well as underlying assumptions.
c) Latest aged analysis of trade debtors and creditors.
a) The borrower has to indicate the type of security to be provided and submit the latest independent professional valuation reports in the case of fixed assets.
b) Security acceptable includes assignment of underlying receivables, charges on financed stocks and commodities, bank guarantees, cash collateral or fixed assets.
c) List of properties to be pledged.
d) Value of each property (as supported by a professional valuation).
e) Whether the property is being used to secure loans from another lender and if so, details of commitments are needed.
f) Location of the property proposed as security.
8. Present banking relationships and other credit facilities
Information required in this respect should include: Types of facilities; Amount approved; Date approved; Outstanding balance; Repayment terms; Due date; Securities provided; and a demonstration of the ability of the company to meet its current obligations.