QUICK SERVICE RESTAURANT

PURPOSE/ RATIONALE ·         This Product Program will address the challenge resulting from high cost of funds as it will grant funds to beneficiaries for the acquisition of machinery and equipment as well as working capital at concessional interest rates.

 

·         It will promote global best practices in the establishment of restaurants of high quality standards that can compete not only with indigenously-owned food businesses, but with global brands that are currently entering the Nigerian market.

 

·         The Program has a very high potential for job creation both directly and indirectly.

 

·         The Program will promote the availability of hygienic, nutritious and affordable food for the populace.

TARGET MARKET/

CRITERIA

Limited Liability Companies and Business Enterprises engaged in or intending to set up quick service restaurant businesses such as fast food and eateries will be eligible to access the Fund.
PROJECTED IMPACT The fund shall be used to establish, expand and modernize (upgrade) fast food businesses and eateries to ensure quality service delivery.
SINGLE OBLIGOR LIMIT
  • Up to N500 million in accordance with BOI SME lending limits
PRICING

 

Interest Rate: 9 % per annum.

Fees: 1% Processing Fee for loan less than N50 million.

          1% each for Appraisal and Commitment Fees for loan             above N50 million

TENOR
  • 31/2 – 7 years (inclusive of moratorium).
MORATORIUM 6 – 12 months from date of Loan Disbursement.
SECURITY ARRANGEMENT

 

COLLATERAL/ SUPPORT

Loan Amount (N’m) Security Arrangement  
 10.0 1.    Specific charge over the equipment financed.

2.   Irrevocable Personal Guarantee of the Chief                      Promoter of the company.

2.     Two (2) external guarantors acceptable to BOI who must belong to any of the following categories:

a)   Senior Civil Servant (Level 12 and above) who should not be more than 53 years old or not more than 28 years in service (whichever comes first.

b)   Bankers (not below the level of Assistant Manager) and must have been confirmed by current employer.

c)     Professionals i.e. Medical Doctors, Lawyers, Accountants, Engineers, etc.

d)     Senior Staff (not less than a manager) of reputable quoted Companies, International Oil Companies, Telecommunications Companies (GSM providers)

e)   The guarantees must be supported with Notarized Statement of Net worth acceptable to BOI.

 
>10.0 ≤ 20.0
  1. All assets debenture.
  2. Irrevocable Personal Guarantee of the Chief Promoter of the company.
  3. One (1) external Guarantor acceptable to BOI who must belong to any of the following categories:

a)   Senior Civil Servant (Level 12 and above) who should not be more than 53 years old or not more than 28 years in service (whichever comes first.

b)   Bankers (not below the level of Assistant Manager) and must have been confirmed by current employer.

c)   Professionals i.e. Medical Doctors, Lawyers, Accountants, Engineers, etc.

d)   Senior Staff (not less than a manager) of reputable quoted Companies, International Oil Companies, Telecommunications Companies (GSM providers)

e)    The guarantees must be supported with a Notarized Statement of Net worth acceptable to BOI.

Or

Bank Guarantee from Commercial Banks acceptable to BOI.

 
  > 20.0
  1. Irrevocable Personal Guarantee of the Chief Promoter of the company in addition to one or a combination of the following:

i.   All assets debenture.

i.                             Legal mortgage on pledged property.

Or

2.    Bank Guarantee from Commercial Banks acceptable to BOI.

FUNDING

STRUCTURE

·         Loan up to N50 million:     90% maximum from BOI (including working capital from BOI or the SME-friendly banks).

·         Contribution by the promoter – 10% (minimum)

·         Loan above N50 million: 80% maximum (including working capital from BOI or the SME-friendly banks).

·         Contribution by the promoter – 20% (minimum)

Existing Business:

  • For an existing project, the estimated value of the factory building and/or relevant processing equipment, may be applied against the borrower’s 10% contribution. The factory building and/or equipment must be valued professionally by any of BOI’s accredited valuers.
DISBURSEMENT Term Loan:

In phases in accordance with agreed milestones and shall be backed by provision of performance bond by the accredited equipment suppliers (where the suppliers demand for advance payment before delivery of the equipment).

 

Working Capital:

  • After successful installation and testing of the equipment and payment shall be made directly to raw materials suppliers
REPAYMENT SOURCE
  • From the cash flows generated by the operations of the project
REPAYMENT MODE
  • Monthly payment of interest and principal
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