A specified amount with agreed repayment period usually up to 12 month.
Drawings against uncleared effects
To address the financing needs of dealers/distributors of corporate clients, UBA Ghana will establish a line of credit with a twelve month tenor and limits set for all distributors. This limit will be determined by the distributors’ operations and size. The dynamics are as follows:
- The corporate client will be expected to provide recommendations in respect of each key distributor/dealer and facility amount.
- The Bank will open a non checking account for each of the key distributor/dealer.
- On the advice from the corporate client, the bank will move funds from the key distributor/dealer’s account with the key distributor/dealer consent to the corporate client’s account to effect payment for the invoiced goods.
- The key distributor/dealer will then start paying in cash or cheques to reduce their debit position.
- As soon as the account is funded enough to accommodate fresh invoices, a fresh cycle will commence with debit entry into the key distributor/dealer account to pay for invoiced goods.
We can create and tailor the right structured solutions for your business needs in order to enhance shareholders’ wealth and your market competitiveness.
- Structured financing solutions that optimize investment returns and reduces effective funding costs
- Structured lease financing
- Oil and Gas Project finance
- Infrastructure development finance.