Asset Finance
We are able to provide you with access to financing options for business assets such as heavy equipment for construction industry, specialised medical equipment, manufacturing equipment, transport vehicles and many more.
A loan facility aimed at supporting a customer to acquire assets to support businesses growth. The customer must be ready to finance part of the transaction and the asset financed must be related to the business. The bank will finance up to 80% of the cost of the asset for a brand new assets and up to 70% for used assets, while the other remaining percentage to be funded by the client. The facility shall be covered by the asset itself, and the bank will offer competitive interest rates to clients, this is with consideration of the fact that the bank will enter into MOUs with various suppliers to supply the assets at a discounted price. The product will offer the following types of financing: Trucks/ Vehicle, Machinery and Equipment.
- 3-years audited financial statements, 12-months bank statements for business account and confirmation of income from the Auditor.
- A deposit to BANK OF AFRICA account of the client’s contribution on the purchase of the asset.
- Certified copy of MEMARTS in case of companies’ owners / directors
- Certified copy a Certificate of Incorporation for companies’ owners / directors
- Certified copy of a Certificate of Reg. & Extract from Registrar – incase of registered business / partnership
- Completion of medical questionnaires (Life Cover Mandatory)
- Proforma invoice and/or valuation report
- All shipping documents to be consigned directly to the bank
- Assets registration documents to be retained by the bank
- Proof of reasonable demand for the goods/established operation
- Additional documents and information may be required if deemed necessary
- Collateral – legal mortgage/debenture, asset that is being finance For International Purchase of assets, the following documents are required:
- Bill of lading
- Order bill of lading
- Straight bill of lading
- Commercial invoice
- Insurance policy
- All shipping documents to be consigned directly to the bank
- Assets registration documents to be retained by the bank
- Proof of reasonable demand for the goods/established operation
- Additional documents and information may be required if deemed necessary Collateral – legal mortgage/debenture, asset that is being finance
- Branch network
Term Loan
BOA offers you the ability to grow your business and invest in your future. We offer flexibility of long and short term loans to help our clients’ business.
Financing offered to businesses that are already in operation to support their business needs such as business expansion and asset acquisition.
Features
• Minimum loan amount – TZS 10 million
• As per the borrowers’ needs and ability to pay
• Tenor – up to 18 months (short term); up to 36 months (medium term); up to 60 months (long term)
- Open an account at BANK OF AFRICA
- Turnover of not less than 4 times of requested amount
- Demonstrate ability to repay
- Have a valid trading license and statutory registration documents
- Collateral – legal mortgage (preferably), cash cover, corporate guarantee (for very structured companies)
- Already in the same business for at least 2 years
- Any other additional documents as requested by the bank.
- Loan application form
- Letter of offer
- Repayment schedule
- Copies of security documents
- Branch network
Letters of Credit
You can take advantage of additional risk management services. We will bring your business closer to foreign suppliers, execute payments only when you are satisfied that your shipping is in good order.
Letter of credit is an agreement between the buyer/importer and the seller/exporter that when the buyer receives the goods will be able to remit the funds to the seller. This form of payment is used to give protection to exporters/seller and importers/importer against buyer/sellers’ risk and country risk.
legal mortgage, cash cover(preferably), corporate guarantee (for very structured companies)
- Branch network
Overdraft Facility
We guarantee you the security of access to funds to meet unexpected business needs, along with the flexibility to meet your cash flow requirements
A revolving credit facility that allows client to draw funds, up to an agreed limit, from their account when they need it and only pay interest on amount overdrawn. The funds enable customers the customers to meet urgent short falls like stock wages and other operational expenses during temporary cash flow constraints.
Features
- Minimum loan amount of TZS 5 million
- Repayment period of 12 months
- Open an account at BANK OF AFRICA
- Turnover of not less than 5 times of requested amount
- Demonstrate ability to repay
- Have a valid trading license and statutory registration documents
- Collateral – legal mortgage (preferably), cash cover, corporate guarantee (for very structured companies)
- Branch network
Insurance Premium Finance
Pick insurance option to suit your risk profile. We’ll take care of insurance premium bills by 100%.
This is primarily a short term financing facility that is designed to enable individuals and companies to meet their pressing requirements for Insurance Cover policy at beginning/end of their cover policies.
- Borrowers must be Tanzanians /foreigners firms operating in Tanzania.
- Exceptions will be considered for professionals, joint borrowers or individuals with verified incomes DOCUMENTS
- Completed Application Form
- Personal Reference Form (This is in the application package)
- Bank Statements for the last 12 months
- Most recent six (6) month salary slips
- Company Profile
- Business License/TIN/Certificate of inc/Registration
- Tax clearance
- Certificate Bank Statement for the last 12 months of the company
- Certificate of Incorporation/Registration
- Audited Accounts for the last 3 years.
- Branch network
Lease Financing
Buying new Equipment can exorbitant. Our lease agreement dramatically takes that expense off your books. Upon project completion, our clients have an option to purchase tremendously reduced rate
Ownership of the Asset is transferred to the lessee at the end of the lease term, or at the end of the lease tenor, you can have the option to become owner of the Financed Asset, or you can return the asset to us.
All Corporate Customers who have a healthy business can get the service Product
Documents
- Signed Loan Application Letter.
- Signed Board Resolution to Borrow.
- Audited Financial Statements of Applicant and Its Related entities at least for the past two years.
- Draft/Management Accounts the respect year.
- Bank Statement of perspective year with Bank of Africa or other Banks
- Details of Present banking relationship of the client i.e. facilities secured, securities pledged, tenor of the facilities, etc. if any.
- Monthly Cash flow statements for the entire credit period.
- Debtors/Creditors aging Analysis.
- Recent Annual return filed with the Registrar of Companies.
- Branch network
Renewable Energy & Energy Efficiency Loan
We have created a comprehensive financing solutions for clean conventional energy-related projects to meet your most critical strategic and funding needs. In partnership with Agence Française de Développement (AFD), We have set aside $12 million to drive clean energy initiatives. With up to 12 years repayment
A framework for the financing of renewable energy in Tanzania. To Purchase, commissioning and installation of renewable energy solutions in Tanzania.
Lending terms/requirements
- Loan application letter
- Energy/power purchase agreements (Project Financing)
- Project finance proposal (Project Financing)
- Project feasibility report (Project Financing)
- Energy audit reports
- Insurance policy
Other documents:
- Certificate of registration/Certificate of Incorporation
- MEMART
- Board resolution to borrow
- Recent filed returns with registrar of companies
- Security of the loan upon the discretion of the bank on a case by case basis.
- 3 years audited accounts
- Recent management accounts
- Branch network
Bills for Collection
A documentary Bill for Collection is an order by the seller to his bank to collect a certain sum from the buyer against the transfer of the shipping documents. Payment can be made by cash or by acceptance of a Bill of Exchange
- Provider a degree of security to our client (the importer)
- Easy and speedy to setup, making it particularly suitable for transactions that need to take place quickly.
- Useful for trading situations that require more security than open account but which do not warrant the expense of a documentary credit.
- Cost of service is competitive and flexible.
Lending terms/requirements
- Loan application letter
- Energy/power purchase agreements (Project Financing)
- Project finance proposal (Project Financing)
- Project feasibility report (Project Financing)
- Energy audit reports
- Insurance policy
Other documents:
- Certificate of registration/Certificate of Incorporation
- MEMART
- Board resolution to borrow
- Recent filed returns with registrar of companies
- Security of the loan upon the discretion of the bank on a case by case basis.
- 3 years audited accounts
- Recent management accounts
- Branch network
Guarantees
Traders can do this undertaking to be accountable to the payment or performance of another person’s debt or obligation in the event of a default by the person primarily responsible for it.
Enables the customer tender for more bids
- Enables the customer make necessary preparations for initial start- up of project.
- Fill BANK OF AFRICA-T Bid application form
- Board resolution (Headed paper with company stamp on it)
- Tender notice & Bid Format
- KYC Documents (For Non Account Holders)
- Board Resolution (Headed paper with company stamp on it)
- Application letter (Stating amount of guarantee and type of guarantee and tender details)
- Certified Copy of Registration Certificate (Includes CRB, TIN, Current Business license, & Certificate of incorporation)
- Current Annual Returns
- Financial statements (3 Fiscal Years)
- Bank statements (12 Month)
- Copy of the Contract of the Project
- Securities (Cash cover/legal Mortgage/Assets like machines, trucks etc. With exclusion of specialized equipment and trucks beyond 10 years old.
- Branch network
Invoice Discounting
A special type of overdraft which mainly targets fuel transporters and suppliers to Large Local and Multinational Corporates. (Suppliers). The Bank ensures that cash flow is constantly available by establishing a special line of credit to finance the gap when the invoice payment is delayed by the other party.
- Financing of up to 80% of the amount discounted on the invoice.
- Tenor – 12 months for the facility (maximum of 90 days for discounted invoices)
Benefits- Customer
- Release funds to improve cash-flow.
- Quick finance solution
- Reduces Corporates’ level of accounts receivable, making you able to present a healthier balance sheet.
- No need to chase payments.
• Open a current account with BANK OF AFRICA-TANZANIA
• Present invoices and/or delivery orders that have been accepted by the buyer for payment indicating due date for payment and confirming that those goods have been received in good condition
- Branch network