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BRIDGING FINANCE
What is Bridging Finance?
It is a short term loan for a period ranging from 1 month to 6 months depending on the nature of the contract. It allows a client to raise money quickly against the value of a contract with the loan being cleared once the terms of that contract have been fulfilled. Bridging loans are usually taken to solve temporary cash problems (bridges the finance gap between the commencement of the project and its completion).
Use of funds
- Purchase of materials to facilitate completion of a contract
- Payment of wages
- Payment of transportation
- Miscellaneous project expenses
Applying for a Bridging Finance Facility:
Applying for a bridging finance facility is similar to applying for any other loan at the SLDB with the only major difference being that of the time frame it takes to approve. A bridging finance loan may be completed within a week once all checks and documents required are submitted and verified.
Some of the key benefits of bridging finance are:
- Simple and efficient application procedure
- No deposit or down payment required
- Service charge of 10% payable at the end of the project
- Continuous site visits and project monitoring
- Minimal fees
- Loans available from EC$3,000 upwards.
- Cheque disbursements paid to the supplier
What you will need:
- Completed SLDB Application Form A
- Assignment of Funds Document
- A valid contract stamped & signed by the relevant Ministry.
- Two (2) forms of valid picture ID
- Proof of address (utility bills etc.)
- Project Costing
- Open bills for materials being purchased (where required)
- Labour sheet for wages –names of workers, days and amount to be paid
- Certificate of Good Standing, Incorporation and Bye-Laws (for companies)
- Financial Statements (for companies)
- Applicable fees
- Stamp cost of EC$20.00
SLDB will require that:
- The name and contact information of the project supervisor or manager
- In the case of construction projects, the exact location of the project be provided
- Borrower withholds no available information or data requested by the Bank
- Site visits are conducted before each disbursement
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