These are non-revolving facilities whereby the final maturity extends beyond one year, from the date of approval by the Bank, for Term Loans and less than one year for Time Loans.
Term/Time loans are normally packaged to finance capital projects or a customer’s expansion programme.
Instalmental repayments are scheduled at pre-agreed times and usually tied to the cash generated by the project or transaction. Term loan proposals must be backed by independently verifiable cash-flow projections, based on sound project assumptions. Loan covenants would be applied to ensure that the customer keeps to the agreed business repayment plan.
Finance tailored towards a specific project. The loan and equity returns are tied to the cash flows and profits generated by a particular project, rather than on the company. Part-finance by the Bank is also possible for large projects.
Wema Bank Plc can buy or fund the purchase of a capital asset at a client’s request and hire or lease it to the company at an agreed rental rate. The title of the asset resides with the Bank until the last instalment is paid, and the client exercises its option to purchase the asset at the pre-determined price stated in the lease agreement. Wema Bank will finance leases for a wide range of equipment in normal use, such as textile machinery, computers, industrial machines, telecommunications equipment, aircrafts, ship and boats, motor vehicles, and so on.