BOG: SANCTIONS FOR THE ISSUANCE OF DUD CHEQUES

Corporate Loans

Overdrafts

This is short-term credit facility (not to exceed one year) arrangement under which the Bank extends credit up to a maximum amount (called overdraft limit) against which a current (checking) account customer can write cheques or make withdrawals. It is a revolving borrowing facility repayable on demand.

This facility is provided by the bank for a fee and interest is charged on the excess amount that is withdrawn for the length of the time. Once the limit is utilized interest will be charged on outstanding utilization on a daily basis.

The purpose of this type of facility is to assist clients with temporary cash flow gaps. Overdrafts must not be used to finance the acquisition of fixed assets.

Title(Required)
Name(Required)
Already a customer at BOA(Required)
Consent(Required)
Invoice Discounting

Invoice discounting allows the SME to draw money against its invoices issued before the customer has actually paid. To do this, the SME borrows a percentage of the value of its invoice from a bank, effectively using the unpaid sales invoices as collateral for the borrowing.

Request letter
Board resolution (Ltd. Liability)
Invoice(s) to be discounted
Letter of Understanding
Company profile
Security / Collateral
Letter of Undertaking from contract employer.

Term
1 – 12 months

Minimum amount
50% of the invoice value

Maximum amount
80% of invoice value and GHS 1,000,000.00 whichever is lower.

Currency
GHS, USD

Interest rate
GRR + 2%-10%%

Commitment fee
1.5%

Processing fee
1.5%

Title(Required)
Name(Required)
Already a customer at BOA(Required)
Consent(Required)
Local Purchasing Order Finance
 This includes the financing of Local Purchase Orders (LPO) or contracts from approved counterparties involving the supply of goods whose specifications are set in the contract or agreement. and services. Contractors are provided with funds to pre-finance the execution of the contract.
The tenor of the contract should not be longer than 180 days
Title(Required)
Name(Required)
Already a customer at BOA(Required)
Consent(Required)
Cheques Discounting

This allows customers to borrow money from the bank on the security of postdated cheques issued by their credit-worthy customers. We give customers immediate value to confirmed commercial bank instruments such as bank cheques, bank drafts, Bankers’ Payment, and other confirmed instruments in this class.

Cheques to be discounted.
Facility application letter duly signed by authorized signatory [ies].
Board resolution covering the credit request.
Company’s Registration Documents.
Latest call report on discussions regarding the credit request.
Personal financial statement of guarantor[s] (Statement of Net worth).
Cheques to be discounted.
Deed of assignment.
Letter of Set-off and Lien.
Title(Required)
Name(Required)
Already a customer at BOA(Required)
Consent(Required)
CashBacked Facility

This is when customers use their own funds as collateral to borrow money

Facility application letter duly signed by authorized signatory[ies]

Board resolution covering the credit request

Company’s Registration Documents

The cash collateral shall be kept in a savings account or a certificate of deposit until the borrowed funds are paid back

The facility amount shall not exceed 90% of the hypothecated funds.

If the cash collateral is not denominated in Ghana cedis, a conservative conversion rate will apply.

Title(Required)
Name(Required)
Already a customer at BOA(Required)
Consent(Required)
Business Vehicle Finance Details

At an affordable rate BANK OF AFRICA will assist you with financing to acquire your dream car from any accredited car dealer/showroom. (Terms and Conditions Apply)

How It Works:

  • Walk into any Showroom and pick a car of your choice
  • Complete and submit needed documentation to BANK OF AFRICA
  • Get Approval and drive the car in less than 10 days

  • No Collateral needed
  •  Have up to 60 months to pay for a car
  • The vehicle is fully insured
  • 3 years/100,000km Warranty

  • Facility application letter
  • Company Profile
  • 3 years audited financial statements for most recent year
  • Cash flow projections for the tenure of the facility
  • Bank statements from major banker(s)
  • Pro – forma invoice from an accredited car dealer
  • Equity contribution of 25% of the value of the car

Title(Required)
Name(Required)
Already a customer at BOA(Required)
Consent(Required)
Equipment Fiancing Details

We provide businesses with funds to purchase equipment and machinery needed to operate and grow your business. 

  • Facility application letter 
  • Company Profile 
  • 3 years audited financial statements for most recent year 
  • Cash flow projections for the tenure of the facility 
  • Bank statement from major banker(s) 
  • Pro – forma invoice from supplier 
  • Equity contribution of at least 20% of the value of the equipment

Assets with a high degree of obsolescence should be financed only with a tenor not exceeding two years. 
Title(Required)
Name(Required)
Already a customer at BOA(Required)
Consent(Required)