Managing working capital is one of the most important components of any business. Keeping this in mind, MEB offers you a wide range of banking products and services which are customized to meet working capital requirements of the businesses.
By definition working capital loan is used to finance everyday operations of a company. MEB working capital facilities would help you to meet your companys short-term cash flow requirements.
MEB working capital loans are issued to meet customers short term financing needs during the process of production and operation.
As an efficient and practical means of financing, working capital loan is one of the most popular credit products, characterized by the short loan term, simple procedures, stronger turnover, and lower financing costs.
Businesses day-to-day financial requirements such as:
• Meet payroll and other payment obligations
• Marketing costs
• Restocking inventory and supplies
• Minor renovation, expansion and remodeling
• Increasing sales growth or seasonal growth
• Closing cash flow gaps
• Taking advantage of discounts on purchases from vendors
• Reduced cash reserves because of recent operating losses
• Increased expenses due to additional marketing efforts, new employees, office relocation
Terms of working capital loans can be divided into short-term (less than one year) and under extraordinary circumstances medium-term loans (one to three-year) may be granted;
The loan can be secured or non-secured dependent on the credit quality of the customer.
Types of Islamic loan contracts used for the product
Subject to borrower credit quality, loan amount, term, guarantee methods and other factors such as interest rate can be adjusted in accordance with the policies of Middle East Bank and regulations governing the bank.
While the tenor of Working Capital Loans is limited to one year however the agreed tenor is subject to various micro and macro economic factors i.e. borrowers position, industry norms, market condition and etc.
This product is mainly available for corporate clients
1. MEB Personal Information Questioner
2. MEB Corporate Information Questioner
3. Company Profile
4. Industrial, Commercial, Trade License of the Co
5. Six Months Bank statements of other banks
6. Loan application
7. Certificate of enterprise legal representative or power of attorney, board of directors resolution and the articles of association
8. Last three years audited financial statements
9. Year to date in-house accounts (trial balance)
10. Any other documents (if needed)
1. The applicant contacts Corporate Banking Department of MEB to submit the loan application and provide the above mentioned list of documents
2. MEB conducts the due diligence and credit rating process to evaluate the operational, financial and structural risk analysis of the application
3. After approved borrowers two parties sign the MEB Working Capital Loan Agreement and other related text of the agreement (such as guarantee contracts, mortgage contracts and pledge contracts, etc.)
4. For new to bank clients, the borrower opens an account in one of the MEB branches or alternatively the existing client its account to withdraw the loan.