Accounts & Deposits

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

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

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