Obligor Limit: N20,000,000 (Twenty Million Naira)
Product Description: Finances local purchase orders for supply of visible products.

Criteria

  1. Contract employer must be on the approved HBL’s counterparty list
  2. For local purchase (not for importation)
  3. For supply of tangible goods (not service)
  4. Bank funding is 70% of cost of execution

Equity Contr.: 30% minimum
Tenor: 90 days maximum (Tenor to be aligned to the specifics of the contract with maximum of 30 days allowance for delay)
Interest Rate: 25% – 29% p.a.
Fees: 1% flat Commitment & 1% flat Management

Security

  • Domiciliation of contract proceeds
  • Personal Guarantee/Indemnity of chief promoter of Obligor Company
  • Undated Cheques covering the facility amount to the tune of 150%.

Major Transaction Dynamics

  • Goods are delivered by the vendor (supplier) to the contract employer’s designated premises/warehouse.
  • Upon satisfactory delivery and acceptance of the goods by contract employer, ICU or BCM or Cluster Head sends a mail to CRM credit administration to remove lien on the customer’s facility account, with copy to SME.
  • CRM removes lien on the customer’s account to enable payment to the vendor as per customer’s payment instruction.
  • RM and ECM follow up on the customer/contract employer to ensure payment is effected by the principal within facility tenor.
  • Principal pays to the contractor’s Non-chequeing account with HBL in line with the domiciliation agreement
  • Facility is liquidated upon receipt of contract proceeds.

Request for an LPO Finance Loan now

Designed for Financing local purchase orders for supply of visible products.

YOU MIGHT ALSO BE INTERESTED IN…

RECEIVABLE FINANCE (IDF FINANCE)

Learn more

SME OVERDRAFT

Learn more

SCHOOL SHORT TERM FACILITY

Learn more

Click here to view all our Available Loan Products

At Heritage Bank we cultivate real partnerships with Micro, Small and Medium Enterprises (or MSMEs, if you like). You practically become part of a family – call it a “progress club”. By our very nature, our services are personal, and deliberately approached from a bespoke angle, to simplify your life.

Click here to chat with us LIVE