Forms of finance

Within the framework of the RSBF, the following types of business finance in the range starting from US$100 up to US$200.000 are offered:

Finance for Micro Businesses
Finance for Small Businesses

The conditions for finance and the products offered do vary from partner bank to partner bank. But typically the following loan products are offered.

Express-Micro

Loan in one day!

streamlined application procedure;
speed and confidentiality;
continuous access to bank financing.

Express micro loans do not have a required minimum amount, but generally the minimum loan requested is for USD 100. At present, micro loans below USD 5,000 account for about one third of the total loan portfolio generated under the Programme. Small amounts are extremely important for micro entrepreneurs and we are well aware of the fact that they may help only when timely received. The Express-Micro product is designed to provide an expedient disbursement, within 24 hours from application, to typical micro businesses. Micro businesses operating in the trade, manufacturing or service sectors may apply for Express-Micro Loans. Generally, this product is designated for businesses with no more than 10 employees and is disbursed for no longer than one year. Interest rates are set by the credit committee and remain fixed for the entire loan period. Loans are repaid in equal monthly instalments which make it a regular budget item for the business/family. Grace periods are not considered.

This type of loan does not require real estate or personal property as collateral. Instead, suretyships are taken as collateral.

The most important thing is that loans are disbursed very quickly!

Micro Loans

Loan in two days!

Micro Loans are loans of up to USD 10,000. Micro Loans may be used for various purposes: replenishment of working capital, purchase of trade and production equipment, renovation of business premises, acquisition of immovable property and transport. Currently, the average loan tenor is 12 months, but tenors of up to 3 years may be considered.

Micro Loans are repaid in equal monthly instalments, which makes it easier for the proprietor to budget the payment as a "regular" monthly cost. If necessary, a different repayment frequency can be set (e.g. twice a month), or the instalment size may be tied to the amount of income earned in a certain month (if the business is of a clear seasonal nature), or a grace period for the first instalment may be provided.

A flexible approach to collateral is taken, where business and/or personal property may be accepted as collateral as well as third party property and suretyships.

Small Loans

Loan in five days!

Small Loans are generally for amounts ranging between USD 10,000 and USD 200,000. The typical borrowers are manufacturing enterprises and service companies which apply for a loan to purchase additional equipment or raw materials. Trading companies may use Small Loans primarily for the purpose of project financing that involves investments in fixed assets such as the acquisition of equipment, renovation of premises, and purchase of real estate.

The typical loan tenor is up to 36 months, but loans up to 60 months can be considered. In addition, a loan may be disbursed in tranches if the project does not require the full loan amount immediately.

Loans are normally repaid in equal monthly instalments. But repayment schedules allow for some flexibility: grace periods on repayment of principal may be considered as well as flexible repayment schedules which take into account strong swings in revenue due to the seasonality of the business.

As with Micro Loans, a flexible approach to collateral is taken. Collateral may include property owned by the company, company directors or third parties. In some cases, especially when a loan is disbursed in tranches, the property to be purchased with the loan proceeds can also be pledged as security.