Signature finances Small and Medium Enterprises, enabling them to expand their business operations and increase their productivity.
The financing Features of Signature’s small and medium enterprises:
European Investment Bank Funding for SME Loans
Through an agreement with the European Investment Bank (EIB; www.eib.org), we are supporting small and medium-sized businesses (SMEs) by providing access to an invaluable source of lower-cost finance and flexible repayment schedules.
The EIB is the long-term lending bank of the European Union; its role is to finance investment projects in support of EU policy objectives. With a view to supporting EU external action, by decision of the European Parliament and of the Council, the EIB is granted an External Mandate to finance corresponding projects outside the EU.
Thanks to its best possible rating on the capital markets (AAA), the EIB can borrow funds on favorable terms, which it passes on to SMEs through us. We specifically and individually inform the SMEs of the EIB’s involvement and its impact on the financial terms of the loan received. Extensive information related to the EIB Group’s support to SMEs can be found on the EIB website (www.eib.org).
The EIB is strengthening its support for SMEs by helping this critical sector to access vital new lines of credit. The loan term is a minimum of 2 years (the actual length of the loan will depend on the economic and technical life of the project financed), and it can be used to finance from very small projects to investments with a maximum cost of EUR 25 million. The EIB’s contribution, however, cannot exceed EUR 12.5 million.
The EIB loan can be used to finance all investments and expenditures that are incurred in the context of the development of an SME, i.e.:
In case this was requested by the EIB: (a) upon reasonable notice, you should permit the EIB representatives to visit and inspect all sites, installations, and works that comprise the project which is the subject of the loan, and (b) we may provide information about you to the EIB.
Please contact our relationship manager or visit our local branch to discuss if your business qualifies for funding supported by the EIB “Loans for SMEs” scheme.
Direct cash facilities can be used to fund clients to cover their working and investment capital needs for a short, medium or long term period. Determining the appropriate form of finance required depends on the nature of the business and the purpose of the finance:-
The Bank offers an overdraft account up to a certain amount for a certain period, renewable with the consent of the customers and the bank, in which the Client is allowed to draw from the overdraft account after signing the facilities contract, between the bank and the client.
Granting the client an overdraft account, for their businesses which have ongoing cash flows in order to increase the business, industrial, or service in accordance with the limits and specific guarantees agreed between the client and the bank. .The advantages of an Overdraft are that a customer may deposit funds into the account to reduce the balance and the interest incurred on it.
The account should be renewed annually by mutual consent, based on the client’s activity and the account. The interest should be calculated on the basis of the highest daily debit balance and charged on the customer’s account on a monthly basis.
Revolving loans for financing the need for the working capital (raw materials and operating expenses).
The bank offers letters of credit to clients in order for them to finance their payments for imported goods. Under letters of credit or bills of collection, payments can be made in installments over a specified period.
The Bank offers loans to clients to finance their exports of manufactured goods in Jordan. These loans are usually offset by Import letter of credit from clients and can be given in local or foreign currency as required or instructed by the regulators (the Central Bank).
Assets based finance loans:
Loans are granted to multiple targets in order to develop real estate, commercial and housing projects or to simply purchase land. The usual terms of these loans are for a medium-or long-term period between 3-7 years.
At the request of the borrower, loans are given to contractors or suppliers who are responsible for the construction, maintenance or supply of equipment and services. The borrower must make assignment of proceed to the bank in order to repay the loan with the possibility that proceed can be deducted from the borrower’s account based on a certain percentage of each amount.
The bank can provide financing to customers who need the funds for such reasons as cars required for work, equipment and production lines for their factories. These loans hold a maximum term of 7 years with an appropriate grace period.
Indirect facilities such letters of credits and guarantees are implemented with the clients based on the nature of their activity.
Documents required from the applicants of Signature for the SMEs loans:
(1) If the applicant is a company or establishment, the following documents are required:
(2) Whereas, IF the applicant is an individual a valid license for practicing a profession or craft, issued by the Chamber of Commerce and/or the Municipality, with a copy of the applicant’s identity card must be produced.
(3) Both applicants should provide a bank account statement for the last six months.
(4) All Documents should prove the availability of funds for repayment: Financial statements for at least the last two years (audited financial statements, unaudited budget, sales tax report, and the enterprise books for review).
Applicants must provide one of the following collaterals which are accepted by Signature such as:
– Cash
– Mortgage
– Negotiable security
– Equipment
– Personal or corporate guarantees accepted by Signature
All these guarantees are subject to the terms and conditions of Signature.
Account managers in the SMEs Department are prepared to come to a clients place of work to help organize the papers and statements required by the Managers of Credit Relations.