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Financing Solutions

Farmer Mechanisation facilities are aimed at helping farmers access financing for the acquisition of different equipment such as harvesters, ploughs, planters and rippers.

The objective is to enable farmers to grow their business. The product is designed to cater for lead, emergent and commercial farmers to finance farm equipment. 

FEATURES
  • Maximum tenure of up to 5 years 
  • Loan size amounting to the value of the tractor and implements on sale 
  • All borrowing subject to facility arrangement fees and Zanaco terms and conditions 

Zanaco issues guarantees on account of distributors to enable them drawdown stock from suppliers/ manufacturers on credit terms.

Zanaco issues guarantees on account of distributors to enable them drawdown stock from suppliers/ manufacturers on credit terms. Should the customer default in repayment, the Bank will compensate the supplier and offer term loans to enable distributors uplift stock on cash upfront basis. 

How it works
  • A contract is awarded to the supplier who agrees to either cash upfront or credit terms 
  • Where the supplier does not have capital to cover cash upfront payment, a term loan is granted subject to meeting standard requirements 
  • If the payment terms are credit against a guarantee, the distributor approaches the Bank for a payment guarantee 
  • Should the distributor fail to pay the supplier on due date, the supplier will call on the guarantee and the Bank honors it 
Benefits
  • Frees up capital 
  • Improves liquidity and helps grow revenue 
  • Access to credit terms from huge corporates 

This enables suppliers in business to perform orders or requisitions for supply to corporate entities.

An overdraft facility allows business to draw funds from their current account up to the overdraft limit approved.

It is a short-term, usually up to 12 months standby working capital credit facility which is usually renewable on an annual basis.

Provided by the bank for the sole purpose of financing the everyday operations of the business, working capital solutions are not used to buy long-term assets or investments but are used to finance daily operational needs such as accounts payable and wages.

Working capital finance is ideal for businesses that have high cyclical sales to help with periods of reduced business activity and periods when revenue generation is unpredictable.

WHO CAN APPLY
  • Registered Businesses with Zanaco Current Accounts
FEATURES
  • Maximum tenor of 12 months
  • Applicable arrangement fee
  • Offered in Zambian Kwacha or US dollar
  • Effective interest rate is Bank of Zambia policy rate plus the applicable margin for Kwacha denominated facilities
  • Effective interest rate is the Bank USD base rate plus the applicable margin for US dollar denominated facilities.
  • Interest is calculated on the daily debit or overdrawn value dated balance and is payable monthly in arrears by debit to the operating account.
  • Customer must have a current account with the Bank.
BENEFITS
  • You will have access to affordable financing 
  • You only pay for what you consume
  • You can re-access the limit after it is paid off on condition that is still valid
REQUIREMENT
  • You will be required to have a Current account
  • Adequate security/collateral to cover the amount sought
  • Board resolution to Borrow (for Limited companies)
  • Certificate of incorporation/registration
  • Articles of Association of the Company (for Limited companies)
  • Application letter detailing the amount sought, purpose of borrowing and duration of the facility sought
  • Company profile
  • Audited accounts for the previous 3 financial years and/or latest management accounts.
  • Projected cash flows for the tenor of the facility with supporting assumptions
  • Full details of security offered as collateral
  • Latest valuation report for landed property offered as collateral to be commissioned by the Bank
  • Insurance of property offered as security
  • Charges to be created over the property offered as collateral to cover the Bank’s exposure.

A term loan is a loan from the bank for a specific amount that has a specified repayment schedule and interest rate.

The loan requires collateral and is appropriate for established businesses with sound financial statements. A term loan is ideal for the purchase of fixed assets such as business equipment to enhance the company’s production process, and capital expenditure. 

WHO CAN APPLY?
  • Registered Businesses with Zanaco Current Accounts
FEATURES
  • Maximum allowed period of 60 months
  • Offered both in Zambian Kwacha and US dollar
  • Effective interest rate is Bank of Zambia policy rate plus the applicable margin for Kwacha denominated facilities
  • Effective interest rate is the Bank base rate plus the applicable margin for US dollar denominated facilities.
  • Applicable arrangement fee
  • Loan management Fee where applicable
  • Repayments can be equated, periodic or bullet depending on the cash flow projections of the Customer
REQUIREMENTS
  • You will be required to have a Current account
  • Adequate security/collateral to cover the amount sought
  • Board resolution to Borrow (for Limited companies)
  • Certificate of incorporation/registration
  • Articles of Association of the Company (for Limited companies)
  • Application letter detailing the amount sought, purpose of borrowing and duration of the facility sought
  • Company profile
  • Audited accounts for the previous 3 financial years and/or latest management accounts.
  • Projected cash flows for the tenor of the facility with supporting assumptions
  • Full details of security offered as collateral
  • Latest valuation report for landed property offered as collateral to be commissioned by the Bank
  • Insurance of property offered as security
  • Charges to be created over the property offered as collateral to cover the Bank’s exposure.