By Emeka Anaeto
Last week, we started discussion on Skye Bank loan offers to SME customers, and like other banks we discussed for several editions, the discussions on Skye Bank will address their various products and services in several weeks from now.
We discussed the bank’s small businesses loan product called SME Asset Finance. In this edition, we focus on two of the bank’s loan offers that are similar to their SME Asset Finance, viz., ‘Short Term Loan and the other is just called Advance. The difference between these two and the first one is in the tenor. While SME Asset Finance has longer tenor, the other two have relatively short tenor. Also, there are some differences in the usage of the loans.
The Short Term Loan has a maximum of 12 months tenor though the focus is on just six months.
The loan amount must not be tied to more than 20 per cent of your company’s annual turnover subject to maximum of N10 million.
It seems this loan package is targeted at private schools proprietors as the emphasis on the usage is to purchase laboratory equipment, furniture, books for library, pay rent and related needs in the schools’ capital expenditure.
The bank’s other offer of loan to small businesses it calls Advance facility has a maximum tenor of three months (90 days) but comes with options of 45 days or 30 days to fee collection.
In this offer, the bank says the maximum loan amount must not be tied to more than 50 per cent of the school collections for a term, subject to maximum of N10 million.
To confirm this facility is meant for school proprietors, the bank says it is created to provide working capital to schools for payment of salaries, purchase of stationery, repairs, etc.