Term Loans

This product is designed to finance asset acquisition, general capacity expansion and long-term financing needs, may also be used for specific expansionary purpose or clearly identifiable cash outlay of specific amounts.

Issues to consider include determining the source/mode of payment, instalments in line with obligor’s capacity/turnover etc.

Term loans may be short term (up to 1 year), medium-term (1 – 5 years) or long term (above 5 years).

Key characteristics:

  • Moratorium period (where applicable), a thorough feasibility study, disbursement patterns, monitoring, use of a qualified project manager, experienced business managers etc.
  • Detailed review of business plan and cash flow projections.