WE shall be rounding up this series on how to get business loan from the Bank of Industry, BoI, next week with a summary of all the basic information required for the loan application and processing which we have provided in the five-part series.
Today we are concluding the part on documentation requirement which we started with the micro-credit documentation requirement. This part is focusing on the documentation for the SME Credit.
As in the micro-credit an loan applicant in the SME Credit category is required to have a formal letter of application introducing his business, as well as providing basic information about the business including its products or service lines, owners, management, years of operation, office or business premises location, market presence amongst other basic information.
After this application letter which is a sort of cover letter the first attachment should be photocopies of Certificate of Incorporation and Certified True Copy of Memorandum and Articles of Association of the Company.
Next should be photocopies of the Certified True Copy of Forms C02 and C07, which are part of business incorporation documents provided along with the above document by the Corporate Affairs Commission.
Then, the Business Plan, a very important document for any loan appraisal to start. Other documents include: Photocopy of title documents to project site (Statutory Certificate of Occupancy or Deed of Assignment); and Photocopy of Title Documents (Statutory Certificate of Occupancy or Deed of Assignment) to the Collateral Security. (This must be a landed property in an urban center); Approved Building Plan (If new building).
More documents relating to the company's fixed asset acquisitions which are required include: Bill of Quantities or Contractor's Estimate of Cost to be incurred on Factory Building; Valuation Reports on Factory Building(s) (for existing projects) and property offered as Collateral Security; and Quotations for items of plant and machinery (at least 3 quotations from different sources).
Finally, comes the financials of the company of which key documents required to be attached are: Three (3) years most recent Audited Accounts of the company (for existing company); and Three (3) years most recent Tax Clearance Certificate for the Company and two (2) Directors.
You will also need to attach four (4) recent passport photographs of each of the Directors and the Company Secretary/ legal adviser.