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Contract Finance
This loan will help businesses finance the smooth execution of contracts awarded only by FirstBank approved list of companies.
Loan Information
This loan will help businesses finance the smooth execution of contracts awarded only by FirstBank approved list of companies. This product is designed to help you fund bigger contracts from FirstBank-approved list of companies; for easy execution without challenges.
- LPO finance is subject to a maximum tenor of 90 days with the option of 60 days renewal after the expiry of the facility.
- Loan Amount does not exceed 70% of cost of supply.
- Irrevocable Tripartite domiciliation of agreement in respect of Contract proceeds executed by beneficiary company, FirstBank and the employer company.
- The employing company must be on the FirstBank list of Principals.
- This product is designed to provide structured and controllable funding to eligible SMEs for execution of contracts for their Principals Features
- CFF is subject to a maximum tenor of 6 months.
- Interest rate: 34% p.a
- Accessible Loan Amount: N100million
- Management Fee: 1%
- Customer’s application letter.
- Letter from Employer confirming the Invoice and stating details / time of payment.
- Valid means of identification (National ID, International passport or Drver’s License) of prime mover or 2 of the company directors for limited liability companies.
- Six (6) months statement of account.
- LPO supply paper.
- Letter of domiciliation of contract payment from Employer Company.
SMEs with annual turnover up to N3billion.
To Apply for a Contract Finance,
- Download the Retail Loan Application Form
- Complete the form and submit to the Retail Team at the nearest FirstBank branch
Facility shall be granted to finance execution of service contracts awarded by approved counterparties. Customers shall provide all contract documents, approvals, and evidence of contract award as may be required by the Bank. Funds shall be utilized strictly for contract execution, and the Bank may monitor project implementation. All contract proceeds shall be domiciled with the Bank until full liquidation of the facility. Failure to perform the contract or diversion of proceeds shall constitute an event of default and may lead to immediate recall of the facility.
FAQs
No, it has to be from an approved Principal of FirstBank.
Yes, domiciliation of business proceeds to the bank.
