As part of its continued efforts to support businesses amidst numerous challenges presented by the impact of COVID-19, dfcu Bank is offering Unsecured bid bonds of up to Shs500m to support traders and contractors in the management of their working capital and secure contracts.
Contractors in road construction, building and civil works, water and electrical installations, consultants and suppliers with contracts in agricultural inputs, security installations and ICT, can now access unsecured bid bonds within 5 hours, with no need for security and payment of arrangement fees.
With several businesses impacted by the effects of the COVID-19 pandemic, contractors who can demonstrate the ability to execute large contracts stand a better chance at being awarded contracts. It is with this background that dfcu Bank sought to support contractors through special offers on some of its trade finance solutions including: Unsecured Bid bond, Performance Guarantees, Advancement Guarantees and Letters of Credit.
Commenting on this latest offer, dfcu Bank’s Head of Business Banking Ronald Kasasa said; “We understand our customers business and know that there may be costs that need to be incurred before they get paid for the job. At the same time, they have day-to-day business costs to meet in the delivery of projects. Our range of trade finance solutions provides that cushion for them to grow within the value chain and successfully win & execute contracts in these tough economic times.”
dfcu Bank has over the years proven to be a reliable financial solutions partner for contractors in different sectors in the country. With the current offer on Unsecured Bid bonds, Performance Guarantees and Advance Payment Guarantees the Banks customers will be well-positioned to take on more work with confidence, knowing they have reliable funding and support in place.
Performance guarantee is a commitment letter issued by the Bank on behalf of a contractor awarded a project offering assurance that the latter will execute the contract, while Advance payment guarantee is a commitment letter issued by the bank on behalf of the contractor offering assurance that the latter will execute the contract upon receipt of the advance payment.
Letters of credit is required for importation of goods backed by contracts these offer assurance that the buyer’s payment to a seller will be received on time and for the correct amount.
All the above solutions will require a minimal security contribution of 30% and will be offered by the Bank within 48hrs.
