Small Medium Enterprise (SME) | Summit Bank

Small Medium Enterprise (SME)

SME Division targets Small & Medium Sized Companies comprises proprietorship, partnership and private limited concerns. In order to facilitate our customers in an efficient manner we have decentralized our SME set up and introduced credit hubs consisting of set of branches in each region. We have the ability to meet the needs of SMEs with our pro-active, responsive and experienced Relationship Managers who are committed to understand the growing needs of business.  SMBL can assist you with the right mix of banking services that will help you manage and grow your business. Our experts will facilitate you in the varied financial situations that you come across.

We offer following financing solutions to your business:

Short Term Financing

a) Running Finance

This is a short-term finance and is used to meet short-term funding requirements of the borrowers. This type of finance does not have a fixed number of payments, as in the case of installment finances. Running Finance is a revolving finance. Once the finance limit is approved, then the borrower is free to withdraw amounts to the extent of that limit. The borrower can withdraw and repay the amount as many times as he wishes to; but he has to pay mark-up on the amount which he has actually used on monthly basis.

Products Features

  • Available for working capital requirements e.g. purchase of stocks, raw material etc.
  • Tenure is one year. (Renewable upon expiry).
  • Principal with multiple withdrawals/deposits to be adjusted on or before expiry. Mark-up to be paid on monthly/quarterly basis.
  • Mark-up rate: To be decided between customer and SMBL.
  • Fast track processing.

Mortgage of urban residential/commercial/industrial properties acceptable to the bank (Max. financing will be 50% of Market Value) or as per the discretion of management of the bank.

b) Finance Against Imported Merchandise (FIM)
FIM facility is a short term facility offered to importers by the bank for the retirement of L/C sight. The bank pledges the imported goods as against agreed terms and conditions which include security and margin. The goods are released to the borrower against the repayment of the bank’s finance and charge either fully or partially, on production of the Delivery Order issued by the banker in favor of the borrower.

c) Finance Against Trust Receipt (FATR)
FATR is a type of import financing facility offered to bank customers. In FATR transactions, the imported goods are released to the importer on the basis of Trust Receipt. The purpose of FATR is to adjust / retire shipping documents under LC (S) and to cover the transit period. Through signing the Trust Receipt, the borrower undertakes to repay the loan as per agreed term between bank and the borrower.

Export Finance Facilities
The exporters usually require financing for production and supply of goods as per their contracts with the buyers. In order to support the export business, Bank offers Pre & Post Shipment financing (own sources), SBP Refinance (Pre/post) and bill discounting facilities.

Long Term Finance
In order to assist business in expansion of production facilities/BMR or for procurement of new machinery we offer the following products.

1.Lease Financing
As one of the most popular financing tools in modern business world, It is used for procurement of machinery, vehicles, office automation medical equipments. A Finance Lease (or Capital Lease) is a lease that is primarily a method of raising finance to pay for assets.
Products Features

  • Minimum lease Period 12 months and max 60 months
  • Payment frequency – monthly or quarterly

2. Term Finance
This type of loan is availed by the borrower to acquire fixed assets (immovable properties i.e. land, buildings and machinery).The loan carries a predetermined length of time (tenor), with repayments based on repayment schedule with equal monthly, quarterly or mutually agreed repayment frequency installments.

Trade Finance:
In order to expand business horizon the companies needs expand internationally. To assist companies for international trade we have full fledged foreign trade department with a dedicated team of professionals. The team is strongly supported by a wide and effective correspondents network spread worldwide. In this regard we are offering the following services to our valued customer through our Trade Department desk.
Trade Finance being the prime focus of our Management, we offer wide variety of Funded and Non-Funded Trade related facilities such as:
Imports: Letter of Credits, Documentary Collection, Registration of Import Contracts, Advance Payments, Finance against Imported Materials, Finance against Trust Receipt, Finance against FE-25.

Exports: Negotiation, Discounting, Documentary Collection, Finance against Foreign Bills, Finance against FE-25, Export Refinance Facilities through State Bank of Pakistan etc.

Bank Guarantees: All kinds of Local as well as Foreign Guarantees.

Local Trade: Inland Letter of Credits, Back to Back Letter of Credits, Local Bill Discounting etc.

We enjoy strong banking relationships with major local and international banks and as a result, our customer base vis-a-vis Trade Finance is growing by the day.

Summit Bank has a strategic presence in virtually all major cities of Pakistan, for instance, Karachi, Lahore, Faisalabad, Sialkot, Islamabad, Rawalpindi, Peshawar, Hyderabad.

The blend of Summit Bank’s specially designed Trade products with a team of trade staff having ample experience & expertise in their specialized areas of trade finance, add great value to the customers’ interest in terms of improved trade cycles, enhanced management of cash flow and greater flexibility.
Refinancing Facility for Modernization for SMEs

  • Financing shall be available for purchase of new imported/local plant and machinery for BMR of existing units and setting up new SME units.
  • Financing shall also be available for import /local purchase of new generators up-to a maximum capacity of 500 KVA under the Scheme.

For details please click the following links


http://www.sbp.org.pk/incentives/ltf-eop/ConsolidatedScheme.pdf


http://www.sbp.org.pk/smefd/circulars/2014/CL2.htm


http://www.sbp.org.pk/smefd/circulars/2015/CL2.htm

Export Finance Scheme
Export Finance Scheme (EFS) is a concessional short term financing facility provided to exporters through banks for export of manufacturing goods and services especially value added services

For more details please click the following links

http://www.sbp.org.pk/incentives/index.asp

Scheme For Financing Power Plants using Renewable Energy

Eligibility

  • Financing is available for establishment of new Power Plant using Renewable Energy with a capacity of up to- 20MW
  • Requirement of AEDB, concerned regulatory authority and other Government departments in compliance with the Prevalent Renewable Energy Policy of GoP are to be fulfilled.

For further details please click the following links

http://www.sbp.org.pk/smefd/circulars/2009/C19.htm

http://www.sbp.org.pk/smefd/circulars/2012/CL11.htm

http://www.sbp.org.pk/smefd/circulars/2014/cl7.htm

http://www.sbp.org.pk/smefd/circulars/2015/C11.htm

Parameters for SME

Please Click here to view

Eligibility Criteria

Type of business who can avail these facilities:

    • Proprietorship Concerns
    • Partnership Concerns
    • Private Limited Concerns

Required Documents/SME Tool Kit

Click here for required documents
Click here for Borrower’s Basic Fact Sheet for Small Enterprises
Click here for Borrower’s Basic Fact Sheet for Medium Enterprises
Click here for Loan Application Form
Click here for Sample of Profit & Loss Account along with balance sheet and cash flow statement.

Mode Of Repayment & Repayment Frequency

        • In Case of Term Loans – Monthly /Quarterly Repayments
        • In Case of Running Finance – Regular Transaction in the account and service of Markup on quarterly basis.
        • Mark-up will be linked to KIBOR.

How to Apply:
Please access our designated branches where our Relationship Managers will assist you for your financing need.
Please Click here to get information of our relationship manager at designated branches

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Last Updated 2017-04-17


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