In order to meet the financing needs of cyclical businesses, the Seasonal Business Execution Financing Facility (SBRFF) is designed to meet the working capital needs of seasonal businesses. The facility will be used for the purchase of stock (raw materials / semi-finished / work in process / unfinished products), spare parts and to cover day-to-day operating expenses. This product is designed for existing businesses to meet their short-term financing needs, and SME Bank borrowers can also take advantage of this service, which is available to all businesses doing seasonal business.
Seasonal Business Running Financing Facility Products Features
1. Available to entities engaged in seasonal business activities.
2. Financing facility available from Rs 0.5 million to Rs 100 million
3. Maximum 11 months, but it will be fixed by seasonal period depending on the nature of the commercial activities.
4. During the active seasonal business period up to eight months maximum, the borrower may deposit and withdraw the amount according to business requirements.
5. After the active seasonal business period, no debits will be allowed to the account and the account will need to adjust within the next three months. The total installation period will be eleven months. The next installation will be allowed only after one month has passed from the previous installation setting date.
6. Minimum 6 months KIBOR + 8.5% annually (adjusted annually)
7. Mortgage of urban residential / commercial / industrial properties acceptable to the bank (The maximum financing will be 70% of the Forced Sale Value of the guarantee and guarantee).
8. Plant and machinery / inventory mortgage (with a 25% margin)
9. Sponsor / Partner / Directors Personal Guarantees. Third Party Warranty (optional).
Who can Apply for Seasonal Business Running Financing Facility Products
1. Sole proprietors, associates and all other legal entities
2. For the creation of new businesses and the expansion of existing businesses.
3. Desirable bank account
Seasonal Business Running Financing Facility Products Documents Required
1. Copy of the CNIC, photograph and bank statement of the sponsor
2. Tax returns and property documents offered as collateral
3. Audited accounts (if the loan exceeds 10 million) / Finances of the last two years preferably
4. Detail and valuation of stock, plant and machinery
5. Personal guarantees
Seasonal Business Running Financing Facility Products Collateral / Security
1. Mortgages (Urban property)
2. Hypothecation of plants & machinery/stocks
3. Pledge of Government Securities
4. Lien on Deposits/Term Certificates
How to apply For Seasonal Business Running Financing Facility Products
To apply for Seasonal Business Running Finance Facility Products, visit to the nearest SME bank branch for application: https://smebank.org/our-network/
SME Bank Contact Information:
Address: 56-F, Nazim-ud-din Road, F-6/1, Blue Area, P.O Box 1587, Islamabad.
Phone: (+92-51) 9217000
Fax: (+92-51) 9217001