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Corporate Banking

Corporate Banking
SME Account

This is card based transactional account which allows regular deposits and withdrawals. The SME account is ideal for SMEs in all economic sectors other than agriculture. This account is also a prerequisite for the SMEs to access associated loan products.

SME Loans

The loans are ideal for all SMEs and the maximum loanable amounts depend on the size of the SME, asset value and ability to repay. The proposed loans include order financing, working capital, bridging loan facility, bank guarantees and asset financing. The loans can be issued to an SME or a group of SMEs where they can guarantee one another in order to reduce default risk

Minimum Requirements

As per SME definition and meeting the following minimum requirements:

• POSB SME account operated for at least 3 months.

• Cover application letter for the required facility.

• Brief business profile and proposal to cover current operations, proposed enterprises, marketing arrangements, and project management structure.

• Financial records for the past 2 years or at least 6 months depending on age of business.

• Cash flow projections covering the tenor of the facility applied for.

• Company or partnership registration documents.

• Partnership deed/agreement is required for partnerships

• Constitution and certificate of registration are required for co-operatives.

• Certified copies of identity and proof of residence for company directors.

• Valid tax clearance certificate and trading licences.

• Collateral – immovable property with title deeds and valuation report or cash deposits or investments.

• Current banking arrangements with other banks. Bank, branch, account number, relationship manager, time with bank.

Agribusiness Account

The Agribusiness Account is ideal for Agribusinesses. These can be, SMEs in agricultural related businesses. This account is a prerequisite for the small agribusinesses to access associated loan products. Large agribusinesses should have a corporate account

Account Opening Requirements

• Original ID ( National ID, Driver’s License or valid passport)

• Copy of ID

• Proof of residence ( Latest utility bills, letter from employer, Headmaster, Chiefs, District office)

Benefits/Key Selling Points

• Flexible and tailor-made loan repayment period

• No restrictions on deposits and withdrawls

• Acess to loans at competitive rates

• Access to ATM card, internet banking and cellphone banking

• Eligible to be a POSB agent and earn commission

Agribusiness Loans

The loans are ideal for all agribusinesses and the maximum loanable amounts depend on the size of the business, asset value and ability to repay. The agribusiness loans include order financing, working capital, bridging loan facility, bank guarantees and asset financing. The loans can be issued to an agribusiness or a group of agribusinesses where they can guarantee one another in order to reduce default risk

Individual Farmers Account Opening Requirements

As per agribusiness definition and meeting the following minimum requirements: • Agribusiness or corporate account operated for at least 3 months.

• Cover application letter for the required facility.

• Official tenure of land (original offer letter, title deed or lease agreement from title holder).

• Brief business profile and proposal to cover current operations, proposed enterprises, marketing arrangements and project management structure.

• Certified copy of national identity documents and proof of residence (individual applicant and/or company directors).

• Insurance policies covering; key-man’s life, crop/ livestock, farm machinery/equipment, loan protection.

• Current banking arrangements with other banks. (Bank, branch, account number, branch/relationship manager, time with the Bank.)

• Cash flow projection covering the tenor of the facilities being applied for.

• Tobacco growers to also submit grower’s number.

• Attach copies of quotations from reputable suppliers for Capital Items to be financed.

• Cash budget for crop to be produced (outlining prices of inputs and output as well as expected profit).

• Production schedule outlining hectarage, timelines and expected yields.

• Irrigated/dry land farming (to be stated clearly in brief business outline).

• Collateral: immovable property with title deed and valuation report/ cash deposits / investments personal / group guarantees (Terms and Conditions apply.)

Corporate loans and Overdrafts

Corporate loans provide corporates with access to working capital as well as capital expenditure finance. Overdrafts allow a company to draw from its account even when it has no funds. Overdrafts enable corporates to bridge temporary financing gaps.

Requirements

• Business plan / project proposal / company profile

• Financial statements as follows:

Income statement

Balance Sheet

12 months cash flow projections

• Registration documents:

Certificate of incorporation

Memorandum and articles of association

CR14

Local authority operating license

• Corporate account with POSB, minimum deposit of $100.00

• Security, preferably immovable property, shares (Copy of title deeds and a current evaluation report)

• Proof of business premises

• Directors documents (Copy of national ID card and Proof of residence dated within 3 months)

Women Empowerment Fund Facility

• Free debit card

The Fund is specifically meant to support working capital and capital expenditure requirements for women projects. Focus will be on primary production, value addition, export-oriented projects and projects with a quick turn-around.

Requirements ( Women Empowerment fund facility)

• Owners’ or Business Directors’ Copies of valid Zimbabwean ID particulars + Original

• Current Proof of residence (utility bills e.g. ZESA, ZINWA, TelOne)

• Business must be operating legally.

• One must own and have operated the business for at Loan Conditions least 3 months.

• Brief Business Profile and Proposal

• Financial records reflecting transactions for at least 3 months

• 12 months cash flow projections

• Business must have an active POSB SME Account or should open an SME Account

• Company or partnership registration documents and or trading license

• Tax clearance certificate

• For co-operatives, a Constitution and Certificate of Registration are required.

• For partnerships, the partnership deed or agreement is required.

• Agreeable to attend capacity building programs provided by the Bank from time to time.

Benefits/Key Selling Points

• Access to low cost Banking

• Access to POSB’s wide distribution network – 35 own branches, over 300 agents, POS facilities, Internet Banking, Cellphone Banking, Bank to Wallet services and Zimswitch

Loan Conditions

Tenure for Working Capital Up to 24 months (at least 1 month grace period depending on business projects)
Tenor for Capital expenditure facilities Up to 36 months (maximum grace period of 6 months)
Application fee Nil
Establishment fees Nil
Interest rate 9 % p.a
Insurance Fees 1% p.a
1% p.a (of loan amount) Business Viability Dependent
Maximum Loan Amount $10,000.00
Collateral • Immovable property (Title Deeds)
Cash deposits or Investments
• Personal / group guarantees
• Movable property registered with RBZ’s Collateral Registry
Agribusiness Linkage Account

The Fund is meant to support rural and small holder agricultural production under the value chain fnancing model. Qualifying benefciaries may access the funds as individuals or in groups to meet working capital and / or capital expenditure requirements.

Eligibility

Projects with the following characteristics are eligible for funding:-

i. Rural and small holder agricultural farmers with a maximum size of arable land of 6 hectares;

ii. Export oriented farming projects;

iii. Import substitution farming projects;

iv. Tight value chain agri-businesses; and

v. Existing, rehabilitated and new small scale rural irrigation scheme

Benefits/Key Selling Points

• Grace period

• Favourable loan repayment period

• Low interest rates

• Affordable loans

Loan Conditions

Tenure for Working Capital Up to 24 months (at least 1 month grace period depending on business projects)
Tenor for Capital expenditure facilities Up to 36 months (maximum grace period of 6 months)
Tenure for Capital expenditure facilities Up to 36 months (maximum grace period of 6 months)
Application fees Nil
Establishment fees Nil
Interest rate $50
Insurance Fees 9% p.a
1% p.a (of loan amount) Business Viability Dependant
Maximum Loan Amount $10,000.00
Collateral • Immovable property (Title Deeds).

• Tangible collateral security being offered to cover borrowings. (house, commercial properties – supply copies of Title Deeds as well as latest valuation report)/ confrmed stop order arrangement from offtaker (include signed offtaker agreements).

• Cash deposits or Investments

• Personal / group guarantees

• Movable property registered with RBZ’s Collateral Registry

School Development Loan Facility

The loan can be used to fnance income generating projects, renovations as well as purchasing assets like school buses. The loan facility caters for (1) working capital loan (e.g. for income generating projects and renovations), (2) asset fnancing facility (e.g. to purchase school buses, trucks and passenger vehicles).

Loan Conditions

• Original ID (National ID or Driver’s License or Valid passport) of authorized signatories

• Copies of members’ IDs

• Proof of residence of authorized signatories • Constitution / Minutes /Resolution

Benefits/ Key Selling Points

• No monthly account maintenance fees

• No withdrawal charges

• Unrestricted deposits and withdrawals

Tenure (6 school terms) up to 2 years
Interest rate per Annum 12%
Establishment Fees 3 %
Repayments Monthly
Loan Amount Depends on project viability and ability to repay
Asset Financing

Under this arrangement, the Bank remains the legal owner of the asset until it is fully paid up by the customer. Thus the Bank and the customer/school enter into a Lease Hire agreement whereby the school would be expected to pay agreed rentals (principal loan plus interest) for an agreed period of time. The asset will be comprehensively insured and the cost being borne by the customer. Other operating costs such as maintenance and servicing of the asset will be borne by the customer. Upon full payment of the extended loan, ownership of the asset will be transferred to the customer.

Additional Requirements

• School Account which receives school fees payments with POSB which has operated for at least 1 month.

Conditions

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Deposit Required Asset Finance (20% of asset value)
Tenure (9 school terms) up to 3 years
Interest rate per Annum 12%
Establishment Fees 3% Upfront payment
Repayments Paid at the beginning of every school term
Order financing Invoice Discounting

Funds provided by the bank to companies to facilitate supplying secured orders.

• The bank provides funding for secured orders.

• The Bank provides short term fnance to traders who require immediate funding by discounting invoices due for payment from their debtors.

• The rate of discount is competitive with flexible periods.

Bank Guarantess

• These are issued on behalf of the bank’s customers in favour of third parties, for specifc amounts, periods and purposes.

• The Bank has a wide range of guarantees issued such as bid bonds, and performance bonds.

• Commission – 7.5%

Structured and Debt financing

• In structured fnance the bank aims to make the customer’s business operations more viable by providing funds in the most needed areas.

• In debt fnancing the Bank will re-fnance the client’s existing debts at an affordable interest rate.

• Fixed interest rates can be negotiated and the bank provides tailor- made packages to suit the client’s business requirements.

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