Funding provided for financing of particular working capital needs that can take a number of different forms. Two main categories are short-term loans and overdrafts.
Short term loans: Short-term loans can be provided with typical tenors of 3, 6, 9, or 12 months. Available types comprise, among others, account receivables financing, pre-export contract financing, financing of inventory. Receivables financing, both export and domestic, are amongst the most common type of short term working capital loan. Structures can be tailor-made to client requirements, with security ranging from support to full assignment.
Overdrafts: Overdraft represents a fully flexible form of financing, where drawings need not be pre-advised and which allows the customer to draw funds against its current account up to a specified limit.
