Q. Who can benefit from Retail Asset Finance for Businesses?
A.
• Growing businesses with a credit turnover from N2.5m to N100m.
a. This business could be in the form of an enterprise/ sole proprietorship, partnership or limited liability.
b. It could be established for profit as with trading companies and service firms or
c. As a non-profit organisation such as NGOs
• Schools and Religious organisations
• Groups of individuals who come together for financial or professional goals as well as leisure such as unions and workers cooperatives, clubs, associations and societies
Q. How can this credit facility be accessed?
A.
• We offer Asset Finance through Non Consumer loans for official and business use. We can only finance up to 2 vehicles under this scheme
Q. Who is the borrower?
A.
• The borrower/ obligor will always be the business entity. Registration and title documents will be in the name of the Bank and entity.
Q. What are the qualifying Assets?
A.
• New cars, jeeps, SUVs, station wagons and space buses
• New buses
• New utility vans including ambulances
• New pick ups
• New motorcycles
• New electronics including generators, computers and allied equipment.
• New office furniture and appliances.
Q. What is the minimum equity?
A.
Brand New Cars
• For schools– 20%
• For Businesses – 30%
Q. What is the maximum loan amount?
A. =N=10 million
Q. What is the maximum tenor?
A.
• New cars, jeeps, SUVs, station wagons and space buses – 36 months
• New buses, utility vans and pick ups – 24 months
• New electronics, allied equipment; office furniture and appliances –12 months
Q. What is the turnover requirement?
A.
• Average monthly credit turnover must be at least 5 times the monthly loan repayment (20% of annual credit turnover)
Q. What is the security for Asset Finance?
A.
• The asset itself; purchase and registration of the asset will be in the name of the Bank and the obligor
• Comprehensive insurance policy on the assets financed with Oceanic Bank noted as first loss payee and co-insured
• A single undated cheque for the full credit facility principal and interest drawn on an acceptable bank other than Oceanic Bank for the total principal, interest and fees. The Bank will draw on this if the customer defaults, to offset the outstanding principal, interest and fees
• A memorandum of set-off on any existing balances in Oceanic Bank. The Bank will draw on these balances if the customer defaults to offset the outstanding principal, interest and fees.
