Corporate Banking Info

Frequently Asked Questions >> Corporate Banking

1.    I have a business plan but do not know if I will be financed by the bank?

We would love to hear your ideas and discuss on your business plan. Whether or not you can get your business plan financed depends on several factors. The key factor that bank looks at is whether your proposed business plan is feasible and we are comfortable with your repayment capacity and cash flow.

2.    What is an Overdraft?

Overdraft (OD) is a revolving/open term funded credit facility that enables a firm/company to manage their varying daily cash requirement.

3.    What is a Bills Purchase?

Bills Purchase means the purchase by the bank other than the issuing bank and/or documents under a complying presentation by advancing or agreeing to advance funds on or before the banking day on which reimbursement is due to the nominated bank.

4.    What is a Demand Loan / Short-term loan?

These facilities are normally provided to support one-off or any particular short-term transactions to finance the working capital component of business.

5.    What is a Project Finance / Term Loan?

Term Loan is a funded credit facility provided for a period exceeding one year for financing the fixed assets of the borrower. We normally provide up to 70% of the financing requirement for financing fixed assets.

6.    What is Working Capital Finance?

Working capital Loan means short term loan facilities provided to a borrower such as cash credit, demand loan provided to finance the asset turnover cycle of the borrower.

7.    What are funded and non funded loans?

Funded loans are those loans where there is an actual transfer of funds from the bank to the borrower whereas non-funded facilities are those which do not involve such transfer. Examples of funded loans are term loans and overdraft. Examples of non-funded loans are letters of credit, bank guarantees, etc. A non-funded facility may subsequently turn into a funded facility, e.g. where the bank makes payment pursuant to invocation of a guarantee issued by it.

8.    Where do I fit in corporate banking, I run a small shop?

The scale of your operation maybe small for corporate banking, however, we have tailor-made scheme for Small and Medium business (SME) which can accommodate your needs. SME banking provides everything that corporate banking has to offer, so please get in touch with our SME banking team today.

9.    Where do I need to apply?

You can contact your nearest branch and get in touch with one of our Credit Relationship Managers or simply call us on our listed phone number and we will get back to you within 24 hours.