The Development Bank of Mauritius Ltd

Transcription

1 Applying for a Loan The traditional option of raising fund for a start-up is to go to a local bank and asks for funding. But banks tend to favor established businesses with a track record and assets. Large banks are not especially eager to lend the relatively small amounts of start-up money most individuals need. They make a lot more money on one big loan than they do on a lot of small loans. Still, it might be worth your while to apply for a bank loan. Capital is supplied to enterprises through banks in the form of bank loans and overdrafts; leasing and hire-purchase arrangements; equity/corporate bond issues; venture capital or private equity; and asset-based finance such as factoring and invoice discounting. We suggest trying a small local bank, preferably one you already do business with or have a savings account. For Capital investment, an entrepreneur may take loan from either the Development Bank of Mauritius Ltd., Commercial Banks or Leasing companies. It is essential that you put yourself and your idea in the best possible light to obtain the loan you need. However, not all business finance is external/commercially supplied through banks and other financial institutions. Much finance is internally generated by businesses out of their own earnings and/or supplied informally as trade credit, that is, delays in paying for purchases of goods and services. Although there are numerous financing schemes and programs for Small and Medium Enterprises there are a number of distinctive recurring approaches by commercial banks and other financial institutions: Collateral based lending offered by traditional banks and finance companies is usually made up of a combination of asset-based finance, contribution based finance, and factoring based finance, using reliable debtors or contracts. Information based lending usually incorporates financial statement lending, credit scoring, and relationship lending. Viability based financing is especially associated with venture capital. The main obstacles to SME funding appear to be on the demand rather than the supply side of the business finance market. This is mainly in the form of: Lack of satisfactory business plans, accounting and other information; Inadequate assets for use as security; and, Insufficiently high levels of profitability, gearing, liquidity, stability, and other business-financial performance criteria on the part of funding applicants. Below are financial schemes available for starting a business

2 The Development Bank of Mauritius Ltd Special Loan Scheme To finance projects with value addition including: Small enterprises in the manufacturing, agricultural, agri-business, handicraft, Small tourism and tourism-related activities Small plant nurseries Vegetables, fruits and flower cultivation on a small scale Kindergartens Small livestock breeding activities ICT and ICT-related activities Services including training E-commerce Small trades (excluding hawkers) Working capital requirements for manufacturing/ processing/handicraft or other projects with value addition up to a ceiling of Rs 75,000 Maximum Loan Amount Rs 150,000 (covering up to 100% of cost of project) Interest Rate Repo Rate + 3% (8.5 % p.a ) Repayment Period Moratorium Period Up to 5 years Up to 1 year

3 Security 1. General Floating Charge and/or 2. Promissory Note, where applicable Eligibility 1. Entrepreneurs registered with NEF, SMEDA, AREU, IVTB, Tourism Authority, NCB etc 2. Women entrepreneurs registered with NWEC or NEF 3. Laid-off workers in the EPZ or other sectors 4. Retrenched workers in the Sugar sector 5. Any other micro/small entrepreneurs holding a Business Registration Card and having a viable project 6. Existing value-added activities requiring working capital finance 7. Any other project with value addition recommended by NEF, NWEC or SMEDA Micro Credit Financing Scheme Providing finance to micro entrepreneurs in vulnerable groups involved in income-generating activities Maximum Loan Amount Rs 50,000 Interest Rate Repayment Period Security 5% p.a 4 years plus 6 months moratorium General Floating Charge

4 Eligibility 1. Micro entrepreneurs in vulnerable groups involved in any economic activity. 2. Family income not to exceed Rs 6,000 monthly Quasi-Equity Financing Scheme Maximum Loan Amount Providing equity and quasi-equity to SMEs 75% of project cost up to a ceiling of Rs 500,000 as follows: 1. 49% in the form of quasi-equity, namely Redeemable Preference Shares or debentures with an appropriate coupon rate % in the form of an equity loan to enable the promoter/s to buy shares in the company Interest Rate 1. Quasi-Equity: Coupon rate ranging from 8.5 % to 13.0 % depending upon time of repayment. 2. Equity Loan: Repo Rate + 3% (8.5 % p.a ) Repayment Period 1. Quasi-Equity: Exit at the end of five years with a conversion clause at our option 2. Equity Loan: The loan along unpaid interests accrued thereon shall be repayable after five years. Interest will be payable yearly with a moratorium of one year. Security 1. Quasi-Equity: None 2. Equity Loan: General Floating Charge on promoter s/borrower s assets.

5 Pledge of the shares Eligibility 1. SMEs involved in the manufacturing, agri-business, tourism, trade or service sectors and holding an acceptable business plan. 2. Companies registered with the Registrar of Businesses Exit Strategy 1. Quasi-Equity: Exit will be subject to repayment according to the coupon rate of the quasi-equity. In case of non payment at the end of 5 years, quasi-equity will be convertible into ordinary shares. 2. Equity Loan: The equity loan shall be repayable along with unpaid interest accrued at the end of five years. Purchase of Improved Breeding Stock Scheme (Under the Food Security Fund) Purchase of breeding animals (dairy cows/heifers, sheep and/or goats) in order to upgrade the local genetic pool Maximum number of animals eligible per applicant(dairy cows/heifers, sheep and/or goats): 50 Maximum Loan Amount Per dairy cow Maximum Grant Rs 30,000 Maximum Loan amount Rs 40,000. Any balance in purchase price to be contributed by beneficiary.

6 Per dairy heifer Maximum Grant Rs 20,000 Maximum Loan amount Rs 30,000. Any balance in purchase price to be contributed by beneficiary. Sheep and goat Maximum Grant Maximum Loan amount Rs 10,000 per head or 50% of purchase price, whichever is lower Rs 10,000 per head or 50% of purchase price, whichever is lower Interest Rate 3 % p.a Repayment Period 5 years inclusive of moratorium period Moratorium Period 1 year Security 1. Fixed charge on building 2. General Floating Charge against the cooperative society, association, societé or company 3. General Floating Charge against the members of the cooperative society, association, societé or company, excluding the residential property or land owned by the members 4. Decreasing Term Assurance, where applicable 5. Pledge of rights to the lease of state land, where applicable 6. Fixed charge on pledge of rights to the lease of state land, where applicable

7 Eligibility 1. Registered (new or existing) agricultural cooperative society, association, societé or company. Individual breeders are NOT eligible 2. Satisfactory financial record Validity Period Until exhaustion of funds Agricultural Diversification To finance projects in the following sectors: Storage of agricultural produce - construction of shed/store Production of agricultural seedlings Maximum Loan Amount 80% of project cost Interest Rate Repo Rate + 3% (8.5 % p.a ) Repayment Period Security Up to 7 years, including a moratorium of up to 2 years 1. General Floating Charge and/or Fixed Charge on immovable property and/or 2. Any other collateral security acceptable to the DBM Eligibility 1. Planters/farmers registered with AREU, SIFB, FSC

8 2. Other operators in the agri-business sector holding valid licences 3. Other projects recommended by AREU Agricultural Sector To finance projects in the following sectors: 1. Mechanisation & Land Preparation - Sugar cane plantation, Vegetable Cultivation, Fruit and Flower plantation 2. Borehole & Irrigation - Sugar cane plantation, Vegetable Cultivation, Fruit and Flower plantation 3. Greenhouse/Protected Culture 4. Ochard & Nurseries 5. Tobacco cultivation 6. Fencing 7. Livestock breeding 8. Transport utility vehicle 9. Fishing, including bank fishing and aquaculture 10. Agro-processing, food preservation and other agricultural diversification projects Maximum Loan Amount 80% of project cost up to a ceiling of Rs 2 Million Interest Rate Repo Rate + 3% (8.5 % p.a ) Repayment Period Up to 8 years

9 Moratorium Period Security Up to 3 years 1. General Floating Charge and/or Fixed Charge on immovable property. 2. Pledge of sugar proceeds or bad weather allowance, where applicable 3. Gage sans deplacement on vehicle, where applicable 4. Mortgage on fishing vessel, where applicable 5. Pledge of rights to the lease, where applicable 6. Fixed Charge on Pledge of rights to the lease 7. Any other collateral security acceptable to the DBM Eligibility 1. Planters/farmers registered with AREU, SIFB, FSC 2. Operators registered with the Ministry of Agro-Industry and Fisheries 3. Other operators in the agri-business sector holding valid licences 4. Other projects recommended by AREU Trade Maximum Loan Amount To finance trade, commerce and any other related activities 75% of project cost up to a ceiling of Rs 2 M Interest Rate Repo Rate + 3% (8.5 % p.a )

10 Repayment Period Security Up to 5 years 1. General Floating Charge and /or Fixed Charge on immovable property and/or 2. Personal Guarantee, where applicable and/or 3. Any other collateral security acceptable to the DBM Eligibility 1. Individuals, Partnerships or Companies holding valid licences/permits 2. Registered local and export-oriented SMEs 3. Projects recommended by Enterprise Mauritius, BOI, SMEDA and other relevant institutions where applicable 4. Any viable enterprise holding a Business Registration Card Manufacturing Manufacturing - start-ups, expansion, modernisation, computerisation, working capital finance Construction of industrial,commercial and office building Maximum Loan Amount 75% of project cost up to a ceiling of Rs 5 M. Above Rs 5 M on a case to case basis. Interest Rate Repo Rate + 3% (8.5 % p.a ) Repayment Period Up to 5 years

11 Moratorium Period Security Up to 1 year 1. General Floating Charge and /or Fixed Charge on immovable property and/or 2. Personal Guarantee, where applicable and/or 3. Gage sans deplacement on vehicle, where applicable and/or 4. Any other collateral security acceptable to the DBM Eligibility 1. Individuals, Partnerships or Companies holding valid licences/permits 2. Registered local and export-oriented SMEs 3. Projects recommended by Enterprise Mauritius, BOI, SMEDA and other relevant institutions where applicable 4. Any viable enterprise holding a Business Registration Card Tourism Tourism setting-up, expansion, refurbishment of hotels/restaurants, purchase of contract cars Maximum Loan Amount 75% of project cost up to a ceiling of Rs 5 M. Above Rs 5 M on a case to case basis. Interest Rate Repo Rate + 3% (8.5 % p.a ) Repayment Period Up to 5 years

12 Moratorium Period Security Up to 1 year 1. General Floating Charge and /or Fixed Charge on immovable property and/or 2. Personal Guarantee, where applicable and/or 3. Gage sans deplacement on vehicle, where applicable and/or 4. Pledge of rights to the lease, where applicable 5. Fixed Charge on Pledge of rights to the lease 6. Any other collateral security acceptable to the DBM Eligibility 1. Individuals, Partnerships or Companies holding valid licences/permits 2. Registered local and export-oriented SMEs 3. Projects recommended by Enterprise Mauritius, BOI, SMEDA, Tourism Authority and other relevant institutions where applicable Purchase of Land Maximum Loan Amount To finance the purchase of land for industrial, agricultural or commercial purpose 75% of project cost up to a ceiling of Rs 2 M Interest Rate Repo Rate + 3% (8.5 % p.a ) Repayment Period Up to 8 years

13 Moratorium Period Security Up to 2 years (for construction of building) 1. General Floating Charge and/or 2. Fixed Charge on immovable property and/or 3. Any other collateral security acceptable to the DBM Eligibility 1. Individuals, Partnerships or Companies holding valid licences/permits 2. Registered local and export-oriented SMEs 3. Planters ICT ICT - start-ups, expansion, modernisation and other ICT-related projects Maximum Loan Amount 75% of project cost up to a ceiling of Rs 5 M. Above Rs 5 M on a case to case basis. Interest Rate Repo Rate + 3% (8.5 % p.a ) Repayment Period Moratorium Period Security Up to 5 years Up to 1 year 1. General Floating Charge and /or Fixed Charge on immovable property and/or

14 2. Personal Guarantee, where applicable and/or 3. Gage sans deplacement on vehicle, where applicable and/or 4. Any other collateral security acceptable to the DBM Eligibility 1. Individuals, Partnerships or Companies holding valid licences/permits 2. Registered local and export-oriented SMEs Printing & Publishing Printing and publishing - setting up, expansion, modernisation, computerisation Maximum Loan Amount 75% of project cost up to a ceiling of Rs 5 M. Above Rs 5 M on a case to case basis. Interest Rate Repo Rate + 3% (8.5 % p.a ) Repayment Period Moratorium Period Security Up to 5 years Up to 1 year 1. General Floating Charge and /or Fixed Charge on immovable property and/or 2. Personal Guarantee, where applicable and/or 3. Gage sans deplacement on vehicle, where applicable and/or

15 4. Any other collateral security acceptable to the DBM Eligibility 1. Individuals, Partnerships or Companies holding valid licences/permits 2. Registered local and export-oriented SMEs 3. Projects recommended by Enterprise Mauritius, BOI, SMEDA and other relevant institutions where applicable 4. Any viable enterprise holding a Business Registration Card Import Loan Maximum Loan Amount Revolving loan to traders for import of stock of goods for distribution and resale in the local market 75% of project cost up to a ceiling of Rs 2 M Interest Rate Repo Rate + 3% (8.5 % p.a ) Repayment Period Security 6 9 Months 1. General Floating Charge and /or Fixed Charge on immovable property 2. Personal Guarantee, where applicable 3. Any other collateral security acceptable to the DBM Eligibility Traders

16 Scheme under the ERCP (Economic Restructuring and Competitiveness Plan) This support program provides financial breathing space to SMEs in difficulties and which availed of loans prior to April It includes waiver of interest/capital for meritorious cases arising from disableness/death of promoter or accidents arising from natural calamities For more information contact the Development Bank of Mauritius Phone: Website:

17 Leasing Facilities The Leasing Equipment Modernisation Schemes (LEMs) for Small and Medium Enterprises under the Economic Restructuring and Competitiveness Programme Presently Government provides a line of credit to leasing companies under the Leasing for Equipment Modernisation Schemes (LEMS) so as to provide affordable finance to companies to shore up their productivity and competitiveness. Objective of the Schemes To provide assistance to SMEs and other eligible enterprises to enhance their competitiveness through the modernisation of their production processes (Under Lems I, II & III) To ease their cash-flows through refinancing of their existing assets (Under Lems IV & ERCP Credit Financing Scheme(ECFS)) The following instrument is applicable for Small and medium enterprises are being operated: LEMS I Leasing facility of a maximum of Rs5 million for the purchase of new equipment by SMEs with turnover not exceeding Rs 50 million per annum. LEMS IV- Leasing facility of a maximum of Rs150 million to ease cash flow of SMEs through refinancing of their existing assets by Sale & Lease Back -applicable to SMEs as recommended by the Independent FinancialAnalyst (IFA). ECFS (ERCP Credit Financing Scheme) - Leasing facility of a maximum of Rs100 million to ease the Cash Flow of the SMEs by allowing them to discount/factor their Sales Credit Invoices to CIM Finance Ltd applicable to SMEs having an Annual Turnover not greater than Rs50million.

18 Details of Scheme 1. LEASING EQUIPMENT MODERNISATION SCHEME I (LEMS I) Objective of Scheme To assist SMEs and other eligible enterprises in enhancing their competitiveness through the acquisition of up-to-date production equipment for modernisation process. Facilities - Maximum leasing facilities of Rs5 million - No collateral (i.e fixed charge) isrequired. - Interest 8.5% per annum fixed - Ratio of financing is 90:10 (i.e 90%) Eligibility Criteria (a) Turnover of Enterprise per annum not exceeding Rs50 million (b) Enterprise has been operating since at least one year (c) Purely trading companies will not be eligible. Conditions Attached to the Scheme (a) SMEs must be incorporated and based in the Republic of Mauritius (b) The Scheme excludes refinancing through Sale & Lease Back of existing assets (c) The Scheme excludes financing of Passenger Vehicles and Rental Cars (d) The facilities are available from Leasing Companies only (not available from Banks) (e) VAT to be paid by SMEs client

19 Mode of Application To contact any Leasing Company for application 2. LEASING EQUIPMENT MODERNISATION SCHEME IV (LEMS IV) Objective of Scheme Lems IV is to allow SMEs to ease their cash flow through refinancing of their existing assets by Sale & Lease Back Facilities - Amount of financing would not exceed Rs150 million irrespective of the applicant s annual turnover amount but the facilities under this scheme is subject to the recommendation of the Independent Financial Analyst (IFA). - Interest Rate is 8.5% fixed - Ratio of financing is 80:20 Eligibility Criteria - Subject to the recommendation of IFA - Purely Trading Companies are not eligible Conditions attached to the Scheme (a) SMEs must be incorporated & based in the Republic of Mauritius (b) The scheme allows SMEs to have refinancing through Sale & Lease Back of existing assets without providing collaterals Mode of Application To contact any Leasing Company for application Validity Period of Scheme/Incentive Corpus of the Fund is Rs500 million. First Come First Serve Basis and subject to availability of funds

20 3. ERCP CREDIT FINANCING SCHEME (ECFS) ECFS is a partnership between the Government through ERCP & CIM FINANCE LTD in giving the possibility to SMEs to have recourse to discount/factor their Sales Credit Invoices to CIM Finance Ltd. Objective of Scheme To ease out the Cash Flow of the SMEs by allowing them to discount/factor their Sales Credit Invoices to CIM Finance Ltd. Facilities offered 90% of the total amount of an invoice or batch of invoices will be advanced to the SMEs within 48 hours following submission of completed dossiers. The remaining 10% balance will be refunded to the SMEs after clients would have paid fully all the amount due. This amount will be paid back to clients net of expenses and relative charges. Eligibility Criteria (a) Limited to SMEs having an Annual Turnover not greater than Rs 50 million (b) Sales must be between Business to Business (B28) (c) Enterprise must be in the manufacturing or services but excluding trading (d) Enterprise must have been incorporated in Mauritius since at least one year (e) Enterprise must have been offering Credit Terms not exceeding 90 days Conditions attached to the Scheme (a) Annual Interest Rate of 7.5% fixed plus a Factoring Fee at 1.5% of the invoice value (b) Fee for opening of a client s account is Rs10,000 (c) It is a one-off fee and is payable upfront

21 (d) Advances per client is limited to a maximum of Rs2 million (e) Funding per SME client is limited to a maximum of Rs100 million Mode of Application Please contact CIM Finance Ltd, Cnr Edith Cavelle & Mère Barthelemy Street, Port Louis Tel No.: , , , Fax No.: finance@cim.mu For further information on LEMS I and LEMS IV, you may contact any of the following Leasing Companies: SICOM Financial Services Ltd SICOM Building, Sir Célicourt Antelme Street, Port Louis Tel.: Fax: @sicom.intnet.mu La Prudence Leasing Finance Co. Ltd 4th Floor, BarklyWharf, Le Caudan Waterfront, Port Louis Tel.: /

22 Fax: Axys Leasing Ltd IFC Building 10, Dr Ferriere Street, Port Louis Tel : Fax : sp@axys-group.com CIM Finance Ltd 14 Barracks Street, Port-Louis Tel: Fax: The Mauritius Leasing Company Limited 3rd Floor, BAI Building, 25 Pope HennessyStreet, Port-Louis Tel: Fax: mleasing@ml.intnet.mu website: Barclays Leasing Company Limited

23 2nd Floor, Barclays House, 68-68A Cybercity, Ebene Tel: Fax: Finlease Company Limited 5th Floor, Travel House, Corner Royal & Sir William Newton Streets, Port Louis Tel: Fax: Mauritian Eagle Leasing Company Limited 2nd Floor, IBL House, Caudan Port Louis Tel No: , /14, Fax No: , Dolberg Asset Finance Limited (Formerly known as Global Direct Leasing Ltd) Ebène House, Ground Floor, 33 Cybercity, Ebène

24 Tel No: Fax No: Website: Expert Leasing Ltd ABC Centre, MilitaryRoad, Port Louis Tel No: Fax No: