Zenith Bank (UK) Ltd — in conjunction with other banks/lenders — will provide large, long term loans to one or more borrowers. Although there may be many lending institutions involved, there is only one loan agreement. The transaction is usually managed by the lead lender, who may act as an agent for the other banks, each of which will be a signatory to the loan agreement. The agent bank facilitates borrowings, receives the loan repayments and distributes them to the other lenders.
There are occasions when a business has to transact in a different currency or range of currencies. Making or receiving overseas payments via the business’s domestic current account is not ideal; foreign currency transactions can be complicated and expensive. Zenith Bank (UK) Ltd can establish international current accounts in most of the world’s major currencies.
A form of borrowing normally used to help a business deal with unexpected costs. Although relatively quick and easy to set up, overdrafts are usually short term arrangements where there is no requirement to repay an amount each month. Interest rates on overdrafts fluctuate in line with the Bank of England Base Rate.
A form of long-term financing that is appropriate for large, capital-intensive infrastructure and industrial developments. The funds may be provided by one bank or a syndicate of banks, equity investors and other lending institutions. The financing is secured by the project assets or revenue-producing contracts and repayments to lenders are made entirely from the project’s cash flow. Although the loans are non-recourse loans, lenders will have a lien on the project’s assets and can therefore take control of a project if necessary.
Under a loan agreement, a lender may choose to sub-contract or sell all or part of its exposure to a contingent obligation, such as a standby letter of credit or a banker's acceptance, to another financial institution. Essentially, an instrument which enables banks to reduce the risk of the loan recipient failing to meet their obligations.
In certain circumstances Zenith Bank (UK) Ltd will lend against purchase orders. As a fully revolving credit facility, a short term trade loan enables the importer to pay for the goods they purchase without first having to sell the goods. A particularly appropriate financing option for wholesalers and manufacturers.
A range of cross border, self-liquidating financing instruments and techniques, covering each of the different stages of a transaction, including pre-export financing, warehousing and transportation finance, a tolling contract financing and accounts receivables financing. Our favoured commodities are: base metals, energy products and agricultural commodities although we will also consider well established businesses trading less liquid commodities.
A standard commercial loan often used by well established SMEs to purchase major assets, such as plant, vehicles, machinery and property, or to fund an acquisition. Interest rates can fluctuate or they may be fixed for the term of the loan, which can vary between one and 10 or even 20 years. Repayments are made out of cash flow either monthly or quarterly.
Zenith Bank (UK) Ltd's Escrow is a contractual arrangement in which we (the Escrow agent) receive, warehouse and disburse funds for the primary transacting parties, with the disbursement dependent on conditions agreed to by the transacting parties. The Escrow agreement comprises three parties: a depositor/(the seller or transferor) an Escrow agent (the bank) and a beneficiary (transferee or buyer). Once the parties to the transaction (buyer/seller/lender and/or borrower) have reached an agreement, the signed contract or purchase agreement — along with the buyer’s earnest money deposit — is submitted to us. Funds for the related transaction are held in the Escrow until such a time that all written instructions and obligations have been fulfilled. The Escrow is an assurance to both parties that funds are being kept for the intended purpose/transaction and can only be released once all the transaction's conditions are satisfied.
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