Finance for manufacturers
Finance for manufacturers
The Bank provides the following types of finance for manufacturing enterprises:
SME term loans
Start-up and expansion of small and medium enterprises.
- Minimum: N$ 150,000.
- Maximum: N$ 3 million.
SME bridging finance
Finance to enable SMEs to fulfill contracts or tenders. Contract or tender income is accepted as collateral as well as assets acquired using DBN finance.
- Minimum: N$ 150,000.
- Maximum: N$ 3 million.
The same facility is also available for corporate clients, requiring amounts between N$ 3 million and N$ 120 million.
Factoring
Factoring provides an advance on slow-paying invoices, allowing the affected company / business to meet expenses while waiting for invoices to get paid.
- Minimum: N$ 150,000.
- Maximum: N$ 2,5 million.
Franchise finance
New enterprises using existing business systems. Expansion of enterprises using existing businesses.
Minimum: N$ 150,000.
Maximum: N$ 120 million.
Enterprise development finance
Funding under this product is availed to finance the start-up
and / or expansion of business enterprises involved in various sectors of the economy, among others: agro-industry, fishing, ICT, manufacturing, mining, services, tourism and transport.
- Minimum: N$ 3 million.
- Maximum: N$ 120 million.
Project finance
Project finance is a funding structure used for ring-fenced business projects and without recourse to the promoters of the business. The loan is repaid from revenue streams generated by the project.
- Minimum: N$ 3 million.
- Maximum: N$ 120 million.
Equity
The DBN may subscribe to the ordinary share capital in a company with a minimum share of N$ 3 million.
Preference share capital
Preference share capital includes elements of equity and debt funding, including cumulative preference shares, participating preference shares, convertible preference shares and / or redeemable preference shares.
Installment sale financing
DBN, on behalf of the client, purchases equipment that is bonded to the Bank until final repayment.
Guarantees
DBN provides a guarantee to a third party, typically an employer, in a construction project or supplier / customer in a trading transaction.
Collateral
Usually the Bank requires an owners’ contribution of 30% for new ventures, while 100% loans may be made to existing businesses, provided that certain financial ratios are met. The Bank requires collateral and / or third party guarantees to secure its resources. Collateral may differ according to the nature and risk of the project.
For further information and the relevant application forms, contact the DBN Lending Department.