What is available for businesses?
Alternative Finance has financing offerings for Micro, Small, and Medium Enterprise (MSME).
What type of financing is available?
- Alt Biz Facility
- Alt Biz Leasing
- Social Mobilization Facility
ALT BIZ FACILITY:
What is Alt Biz Facility?
Alt Biz facility is a product designed for small businesses to augment working capital and for asset (equipment) acquisition.
How much can I get?
We do not give loan. However, we can help you with up to N3M financing limit per business!
What is the difference between Alternative Finance and normal loan?
Alternative finance transactions are based on asset acquisition and equipment financing while normal loans are based on cash only.
What business can you help me finance?
Funds are solely for the purchase of raw material, stock or equipment. It has to be directly related to the business which must be Shariah compliant.
Can you fund Fish Farmers?
Unfortunately, the bank does not encourage financing of livestock farms due to the high risk. However, a special products will be created specifically for Agric customers.
What is the minimum tenure for financing?
6 months.
What is the maximum tenure for financing?
We can do up to 24 months for equipment whilst for raw materials we can do up to 12 months.
What are the requirements?
- Only registered businesses are eligible.
- Businesses must have been in active operation for at least 2 years.
- The management must have cognate experience in the line of business.
- Existing Businesses must present historical account statements (from sterling or others) over a 12month period.
- Existing Businesses must have a 3-month relationship with the bank.
- The company must be profitable with proven capacity to meet obligations Monthly repayment must not exceed 30% DSCR.
- Favourable credit bureau report on the company and its promoters.
- 2 individual guarantors (Undated cheques and BVN from guarantors)
What are the documentations needed for me to have access to the facility?
- Application letter.
- The Alt biz application form duly filed.
- 12 months’ financial statement from sterling and other banks.
- Business registration documents from CAC.
- Proof of 2 years’ business existence (any document that shows the business has existed for 2 years).
- Proof of business location (Recent utility bills, rent receipts, Lease agreements).
- 2 guarantors with undated cheques, BVN and Valid means of Identification.
- NoProforma’s invoice.
- Valid means of identification.
- A commitment deposit – 20% of facility amount.
Can I use my conventional account statement for analysis?
Yes, 12 months’ financial statement from sterling and other banks is accepted. As long as there is a 3 months relationship with Alternative Bank.
Why do I have to make a commitment deposit?
It is to ensure commitment before we purchase the item on your behalf.
Is Alt Biz Facility only available for Muslims?
No, it is open to all small business in Nigeria.
ALT BIZ LEASING:
What is Alt Biz Leasing?
Alt Biz Leasing is a product designed to meet the demands for strictly equipment and asset based financing.
How much can I get?
We do not give loan. However, we can help you with up to 3M to N20M single obligor limit!
What business can you help me finance?
This is for equipment finance only. Assets financed shall be used solely for the operations of the business.
What are the requirements?
- Customer must have at least 3 years’ experience in the line of business.
- One-month minimum relationship with SAF.
- The cost of insurance of the asset would be shared with the customer and factored in the facility pricing.
- Personal guarantee of the company’s promoter supported by a sworn statement of net-worth and 2 undated cheques for facility amount.
- Business must be registered with CAC.
- The company must be profitable with proven capacity to meet obligations.
- Favourable credit bureau reports (3 for the business and 3 for the promoter).
- The useful life of the asset must be at least twice the facility tenor.
What are the documentations needed for me to have access to the facility?
- Application letter stating need and purpose.
- The Alt biz application form duly filed.
- 12 months’ financial statement from sterling and other banks.
- Business registration documents from CAC.
- Proof of 3 years’ business existence (any document that shows the business has existed for 2 years).
- Proof of trading location (Recent utility bills, rent receipts, Lease agreements).
- I personal guarantor with undated cheques, BVN and Valid means of Identification.
- Proforma’s invoice.
- Valid means of identification.
- A commitment deposit – 30% of facility amount.
Why do I have to make a commitment deposit?
It is to ensure commitment before we purchase the item on your behalf.
Do I need to present a collateral before I can have access to this finance?
We don’t require a collateral. However, any equipment above 3M requires a tangible collateral. Also, the assets we are financing serves as a collateral.
Can I get a finance to purchase a land?
The bank does not finance the purchase of a land. However, we can offer home finance after getting a land.
SOCIAL MOBILIZATION FACILITY:
What is Social Mobilization Facility?
Social Mobilization Facility is a product designed to provide quick funds to micro businesses across different trading sectors. It aims at aiding aid financial inclusion.
Sterling bank agents are tasked with the mobilization and repayment of the funds.
How much can I get?
We can offer you a maximum of N250,000 per obligor.
What are the requirements for Social Mobilization Facility?
- Membership with trade/market associations or clusters that comprise of individuals with similar businesses within the same geographical location or members of specific communities as requested by providers of Termed Qard funds.
- Need for the facility must be established, demand for the product must be justified
- Existence in trade location for 6months.
- 1 year experience in line of business.
- Beneficiaries must have achieved a minimum monthly credit turnover of at least 100 % of the amount requested.
- Favourable credit history.
- 2 individual guarantors (must be reputable, an employed mid-level or higher officer of a public or private institution.
- The BVN of the guarantors (individual or corporate must be provided and verified.
- Domiciliation of business proceeds in SAF Kia-Kia account on BankOne throughout the duration of the facility.
Who can be an agent?
- An agent must be a literate. He/She must have a minimum qualification of Secondary School Certificate.
- He/She must be able to provide a valid means of identification.
- The prospective agent must be well known where he/she is transacting business.
- What is the requirements to be an agent?
- A physical location.
- A mobile phone i.e An Android Phone.
- A working capital of N200,000(daily transaction target)
- 2 passports photographed
- 1 Guarantor
- Fidelity Guarantee (for Agent Network Managers)
How can I become an agent?
When you meet the criteria above, you can;
- Visit any Sterling Bank Branch.
- Contact Customer Care.
- What service can I offer as an agent?
- Account opening
- Deposit
- Withdrawal
- Transfer
- Receiving request for financing.
Does being an agent implies that I am a staff of the bank?
Being an agent does not imply you are a staff of the bank. It only means you carry out transactions on behalf of the bank.
Can an agent get a kiosk?
Yes, agent who are situated in areas that requires a solar kiosk.
What is the cost of a kiosk?
The agent will be given targets for transactions and will pay monthly rent for the kiosk.
Will the kiosk belong to the agent?
The kiosk will belong to the bank.
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