STOCK

ACCESS BANK PLC

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19/03/2019

W Power Loan FAQs

Q: What is W Power Loan?
A:  It is designed to provide funds for women owned SMEs to expand their business

Q: What is the definition of a female owned business?
A: Any business that is at least 50% owned by a woman

Q: Are there focused sectors for the W Power Loan?
A: Yes, in the first phase, focus is on the following sectors:
Fashion, Catering/Eateries, Manufacturing, Beauty & wellness, Hospitality & tourism, Education, Information technology and Healthcare

Q: What are the specific uses of the loan?
A: The W Power Loan can be used to finance:

  • Asset acquisition and infrastructure upgrade
  • Purchase of raw materials or stock in trade
  • Working capital requirements

Q: What is the maximum tenor of the W Power Loan?
A: The repayment period can be up to 36 months.

Q: Does the W Power Loan offer moratorium?
A: Yes, there could be discretionary moratorium of up to 6 months

Q: What is the Eligibility Criteria?
A: The Criteria is shown in the table below;

Description Tier 1 Tier 2 Tier 3 Tier 4

Ownership

At least 50% female Ownership

At least 50% female Ownership

At least 50% female Ownership

At least 50% female Ownership

Min Yrs. of Operation

10yrs

5yrs

3yrs

1- 3yrs

Annual turnover

N500m & above

N100m-N500m

N10m-N100m

N5m-N10m

Staff Strength

Min. of 20

Min. of 5

Min. of 5

Min. of 2

Max Loan

N100m

N50m

N20m

N5m

Equity Contribution

30%

 

Security

Legal Mortgage,
All Asset Debenture  Insurance: Credit Life

Legal Mortgage &
All Asset Debenture
Insurance: Credit Life

All Asset Debenture & Credible Guarantor (subject to 120% coverage of the loan) &
Post-dated cheques
Insurance: Credit Life

All Asset Debenture & Credible Guarantor  (subject to 120% coverage of the loan)  &
Post-dated cheques
Insurance: Credit Life

Tenor

 Up to 36months

12-36months

Q: What is the Interest rate?
A: The maximum interest rate is 15% p.a

Q: Are there any additional fees?
A: Yes, a one-off charge of 1% management fee.

Q: What is the required Equity contribution?
A: 30% equity contribution is required.

Q. What is the maximum loan per customer?
A: The maximum loan per customer is N100m. However, depending on where a business falls in our categorization, the maximum that applies per category is as follows:

  • Tier 1 = ₦100 million
  • Tier 2 = ₦50 million
  • Tier 3 = ₦20 million
  • Tier 4 = ₦5 million
Q: Must Beneficiaries be Account Holders?
A: No, Beneficiaries need not be an existing account holder. However, she must open and operate her corporate account for a minimum of 30 days.

Q: What documents are required?

S/N

Document

Tier 1

Tier 2

Tier 3

Tier 4

1

Loan application form

Mandatory

2

Company profile

Mandatory

3

Financial statement

Recent three (3) years Audited account

Recent Audited or Management
account

Three (3) years Bank statement 

Twelve (12) months Bank statement 

4

Bank Statement (including other banks)

 

One (1) year bank statement for all existing bank accounts

6-12 months Bank statement 

5

Credible Guarantor form & Post-dated Cheques

Applicable

Applicable

Applicable

Applicable

6

Credit Check

Mandatory

7

BVN

Mandatory

8

Registration for the Mini-MBA and other W applicable trainings based on customer category

Each Woman is encouraged to attend at least one of the training programs from the ‘W’ Academy.

9

Bill of quantities (BOQ)

If Applicable

10

Pro forma invoice

If Applicable

Q: How can customers apply for this loan facility?
A:  Interested customers can apply online via the W community (www.thewcommunity.com), the Bank’s website or the nearest Access Bank branch.

Q: Where can I pick up the application form? 
A: The application form can be picked up at any branch or printed/ filled online from either (www.thewcommunity.com) or the Bank's website.

Q: How long will it take to process the loan?
A:  The turnaround time for loan processing and disbursement is 72-hours, subject to submission of all required documents.

Q: What are the requirements before the loan can be accessed?
  • Completed and signed Loan Application form
  • Company Profile
  • Audited Report (mandatory for tier 1 and tier 2)
  • Bank statements  (up to 12 months)
  • Duly executed guarantor form supported by notarised statement of net worth
  • Duly executed offer letter
  • Customer’s BVN
  • Satisfactory credit checks
  • Execution of all necessary documents for the perfection of Legal Mortgage/All Asset debenture    

Q: How flexible is the repayment plan?
A:  The repayment plan allows monthly or quarterly repayments. However, it must be in line with the customer’s cash flow from sales, collections and receivables which must be domiciled in AccessBank.

Q: What is the acceptable security?
A: The acceptable security includes any or a combination of the following:
  • Legal Mortgage
  • All asset debenture
  • Credible personal guarantor
Q: Who is a credible guarantor?
A:  A credible guarantor is one who can cover 120% of the loan facility and meet at least one of the under listed conditions:
  • Ownership of a house worth N50m & Above in choice part of selected cities like Lagos, Abuja, Port-Harcourt and other key commercial cities. Submission of a valuation report (to be prepared at the customer’s cost) is required
  • Notarized minimum net worth statement estimate of over 120% of the exposure
  • Senior Management Executive in a Public Liability Company or employee in a blue-chip company with minimum monthly salary of N1m and above evidenced by a statement of account for a six months period and letter from its employer.
  • Clean credit checks
  • For business owners, minimum annual turnover must be at least 200% of the facility being guaranteed, evidenced by a statement of account over a period of 1 year and  Certification of Incorporation to evidence number of years in operation
  • Cash back with guarantor’s deposit of 120% of the exposure
Q: Will the W Power Loan be available in Access Bank subsidiaries?
A: Not at the moment.

Q: Are the training programs mandatory?
A: No, they are not. However, women will be encouraged to attend at least one of the training programs because of the inherent value to their business

Q: What is required for Business Support?
A: It can be recommended based on our evaluation of the state of your business. But it is desirable for all business to do a health check.  This will be need based but will be open to all at a discounted fee.

Q: What does the Business Support entail?
A: The business supports offer a range of services that are adapted to suit the business growth requirement such as Marketing, Sales, HR, Book Keeping, Tax etc.  

Q: Can associations access the loan?
A: No, but their female members in any of the sector can apply for the W Power loan.