Bank Overdraft

Corporate Banking

This is short term financing not exceeding 12 months intended to support working capital
Finances short term finance needs occurring during the intervals between receipt of proceeds and the payment period in the context of the asset conversion cycle
Connected to the NMB Business Account
The facility can be renewed
Strictly not for personal consumption
Not for financing fixed assets e.g. buildings, machinery etc.
Maximum lending to a single borrower will be as per prevailing Central Bank Prudential Guidelines
Price for unauthorized overdraft is +5% on the O/D interest on the exceeded limit
Interest is calculated daily based on the maximum balance used per day
Interest payment is per month, debited from the business account
Duration is 12months, subject to annual review and/or renewal incase of need
Interest rates for corporate lending are competitive and negotiable

To support working capital requirements
Available anytime when applied for but subject to viability of the business and fulfillment of the collateral documentation
Interest is charged only on the overdrawn balances, hence it is cost effective to the borrower
Cultivates a sense of closer cash management for the customer hence bringing efficiency
Gives assurance to the customer of business continuation even during cash deficit cycles

Application letter
Cash flow projections
Business plan
Memorandum and Articles of Association.
Certificate of registration/Certificate of incorporation
Audited financial statements for the last three years, and management account up to date of application
Business license, TIN certificate
Board Resolution to Borrow
Recent filed returns with Register of Companies (for companies)
Tax Clearance Certificate
Proposed security for the facility
Valuation report of the proposed security
Business must prove to be financially viable with sound business turnover