- Project & Structured Finance
- Project Finance – The financing of long-term infrastructure, industrial projects and public services.
- Structured Finance – Complex financial transactions offered to companies with very unique financing needs.
- Short Term
- Term Loan – Loans with tenors of more than one year and up to three years, based on specific funding requirements, with flexible repayment structures. Term loans are usually granted for project finance or capital finance and can be used to fund the acquisition of fixed assets or execution of capital projects.
- Time Loan –Loans with tenors of one year or less based on specific funding requirements with flexible repayment structures.
- Overdraft Facility – This is an extension of credit from the bank that enables the customer to overdraw their account with the Bank beyond the available funds subject to an approved overdraft limit. This facility is usually given for a 365-day tenor and is maintained to fund daily working capital requirements, day to day running expenses, and administrative expenses. Interest on this facility is charged only on the overdrawn limit and for the number of days the funds are utilized before replacement, that is, before the account returns to a positive balance.
- Long Term - This facility is granted to finance asset acquisition, capacity expansion or other long term financing needs. This can be structured as a Finance Lease facility where the loan is granted to finance the acquisition of specific assets including motor vehicles and machinery.
Bonds & Guarantees
- Bid Bonds – Debts secured by bidders for construction jobs or similar type of bid based selection process to provide a guarantee that bidder is capable of servicing contract if selected. We offer this service in a manner that gives competitive advantage against others.
- Advance Payment Guarantee - A guarantee to contract employers to enable our borrowing customers (Contractors, suppliers, developers, etc) secure release of advanced payments of the contract value (in part or full) for execution of project works.
- Bank Guarantee – this is an undertaking from the Bank ensuring the liability of a debtor (the Customer) in line with agreed terms and conditions. It is usually issued on behalf of a credible customer to a third party securing the beneficiary against possible monetary loss. It confirms strong creditworthiness and ability to meet contractual obligations.
- Customs Bond – This service is offered to aid customers meet requirements and specifications set by port authorities and customs service.
- Performance Bond – A bond issued to a party of a contract on behalf of our client, guaranteeing against failure of other party to meet obligations as stated in the contract. A performance bond confirms that the customer has both the capacity and expertise to deliver on the terms of the underlying contract. This Guarantee is usually issued in favor of customer with proven track record of performance. A Performance bond is a contingent liability as the bank does not suffer any monetary loss until the guarantee crystallizes.
- Money Market Deposits – These are interest yielding deposits held at a bank or financial institution for a fixed tenor. These are generally short term, with fixed interest and maturity dates.
- Commercial Papers – This is a short term discounted promissory notes issued by blue chip companies that are usually credit rated
- Bankers Acceptance - This is a short term discounted instrument used in the course of an International trade. The instrument is drawn on and accepted by the bank which is obliged to pay the face value on maturity.
- Treasury Bills – A product designed to enable customers invest in high yielding asset options which are risk and tax free.
- Bonds – This is a long term debt investment in which an investor loans to an entity (typically corporate or government) which borrows the funds for a defined period of time usually at a fixed interest rate.
- Spot Trade – This is the purchase or sale of foreign currencies for immediate delivery
- Import Finance Facility – Financing options provided to customers to aid with the importation and clearing of goods. This facility is used for importation of Equipment and Devices and is usually structured as Letters of Credit. Polaris Bank maintains trade lines with several correspondent banks and these lines are utilized to confirm and/or negotiate LCs to various suppliers. This can be Confirmed, Unconfirmed as well as Deferred LC. An Import Finance Facility will usually have a one year tenor with 90 days, 120 days or 180 days repayment cycles as appropriate, depending on what is being financed
- Invoice Discounting facility - This is a short term financing option that helps to improve the cash flow position of the customer by discounting confirmed invoices for jobs/projects/supplies performed on Local purchase orders from acceptable counterparties. The tenure of this facility ranges from 15 days to 180 days in line with the terms of the contract.
- Contract Finance Facility - This is a short term financing option granted by the Bank to its customers with confirmed Local Purchase Orders from credible counterparties. The contract employers must have track record of meeting its payment obligations. Here the competence of the customer is considered to ensure performance on the terms of the contract with the counterparty.
- Bills for Collection - Under Bills for collection, there is an underlying credit from the supplier for which a Bill of Exchange (an IOU) properly executed by the importer and endorsed by his bank is the underlying “Eligible Instrument”.
- Letter of Credit (LC) – A written undertaking from a bank to a seller at the request of the customer (buyer), where the bank guarantees payment will be made to the seller on time and for the stated amount.
- Confirmation Lines – Confirmation given by a bank, stating that a line of credit has been secured. The bank confirms that the customer is eligible for a specified amount of borrowed funds to be used for a predetermined purpose.
Value Chain Banking
- Distributor Finance – Provision of short term credit facilities to primary/key distributors of a customer for the purpose of optimizing the cash flow of the customer. This solution is usually for fast moving consumer goods.
- Supplier/Vendor Finance – This is a set of financing solutions that optimizes cash flow by allowing businesses to lengthen their payment terms to their suppliers while providing the option for the supplier/vendor to get paid early.
- Receivables Finance – A form of current asset financing, where a customer uses receivables as collateral in a financing agreement. The invoices accepted by the company are usually discounted by the bank for a fixed period or upon payment of the receivables