Export Finance
Murabaha

Export Finance

Pre-shipment Finance

Available to exporters (direct/indirect) for the purpose of funding purchase from suppliers and overhead expenses incurred in relation to the production of eligible goods for export prior to shipment

Post-shipment Finance

  • Available to direct exporters for the exportation of eligible products on sight/credit term upon presentation of export documents after shipment of goods
  • A percentage of Export Income

Eligibility

  • Business registered in Nigeria
  • Exportation of Local produce
  • Business establishment/Management experience of at least 3 years
  • Valid contract backing the eligible product to be exported
  • Good track record in Export Proceeds repatriation
Murabaha

Import Finance

A facility offered to facilitate the importation of raw materials or finished goods either on advanced/deferred terms

Eligibility

  • Business registered in Nigeria
  • Exportation of Local produce
  • Business establishment/Management experience of at least 3 years
  • Good Track record in Export Proceeds repatriation
  • Terms of Payment
  • Nature of goods
  • FX Fluctuation
  • Equity contribution
Import Finance
Murabaha

Cost Plus

How it works

  • LOTUS Bank purchases certain goods based on Sample Customer’s request
  • LOTUS Bank sells the goods to Sample Customer based on actual cost of the good/service plus a pre agreed markup (profit).

Key Considerations

  • The profit markup depends on the tenor of the investment and settlement method of the customer agreed between LOTUS Bank and Sample Customer.
  • The sales price is fixed and cannot be adjusted by either party once the sale transaction is consummated.

What it Finances

  • Import Finance
  • Export Pre-Shipment Financing
  • Inventory Finance
  • Agriculture Finance
  • Working Capital Finance
Ijarah

Lease Financing

How it works

  • LOTUS Bank part funds acquisition of capital goods that have utility value or services jointly in partnership with Sample Customer.
  • LOTUS Bank leases its portion of the asset /services to Sample Customer (the co-owner of the said asset) against rental as the cost of the utility enjoyed by the co-owner
  • Sample Customer pays LOTUS Bank a regular installment amount that comprises of the lease rental and cost of a share in the asset.
  • The lease rentals reduce gradually with proportionate reduction in LOTUS Bank’s share of the asset until Sample Customer fully purchases all of LOTUS’ share in the asset.

Key Considerations

  • By virtue of the agreement signed with LOTUS Bank, Sample Customer (the lessor) is responsible for total maintenance of the asset during the lease tenure

What it Finances

  • Vehicle Financing
  • Consumer Lending
  • Mortgage Financing
Lease Financing
Project Finance
Istisna

Project Finance

How it works

  • Involves a contractor undertaking to construct or manufacture an asset at the request of Sample Customer.
  • A tripartite financing agreement between LOTUS Bank (contract employer), end user (Sample customer) and a contractor will be signed.
  • LOTUS Bank acting as financier at the request of Sample Customer instructs the contractor to manufacture and deliver the required project
  • Upon completion, project is sold to Sample Customer at an agreed sales price

Key Considerations

  • Project attractiveness is largely influenced by the presence of committed off-takers for the development

What it finances

  • Construction Financing
Salam

Forward Sales

How it works

  • LOTUS Bank purchases a commodity / goods in advance for a future delivery date that the goods/commodity was paid for..
  • Sample Customer enters into a contract to buy the goods/ commodity off LOTUS upon delivery from the producer above.

Key Considerations

  • The good /commodities paid in advance usually is lower than the market price
  • The tenor of the forward typically mirrors the life cycle of the product or commodity.

What it finances

  • Commodities
  • Agriculture Products
Forward Sales

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