Abii National Credit Analysis Memo: Confidential

ABii National CREDIT ANALYSIS MEMO
SECTION A
BORROWER’S PROFILE
CUSTOMER INFORMATION
BORROWER Name:
REGINA BIRAGO OWUSU
BUSINESS ACTIVITY PAINTS ACCOUNT NO:

1238610100015
INDUSTRY SECTOR TRADE Account Opening Date : NOVEMBER 2016
OWNERSHIP STRUCTURE RELATED COMPANIES

Shareholder % NAME RELATIONSHIP
REGINA BIRAGO OWUSU 100 N/A N/A
BORROWER’S CONTACT DETAILS

BORROWER’S INCORPORATION DETAILS CONTACT PERSON(S) DETAILS
BUSINESS NAME: REGINA BIRAGO NAME: REGINA BIRAGO OWUSU
OWUSU
DATE: RES. ADDRESS: PLOT 7 BLK BLK B1 Daaban new site
BUS. REG #: PERSONAL TEL. #: 0244269763
TEL: 0244269763 E-MAIL ADDRESS: N/A.
POSTAL ADDRESS: P.O BOX 3550 KUMASI
E-MAIL: N/A NAME: N/A.
OFFICE LOCATION: UN. SHOP ADUM, NEAR N/A.
RES. ADDRESS
BUCHIES. KUMASI
PERSONAL TEL # N/A.
E-MAIL ADDRESS N/A.

MICRO □ SME X COMMERCIAL □ CORPORATE □
Confidential Page 1
SECTION B:
1.0 Business Operations, Background to Request and Justification
[Comment on specific business, key suppliers and buyers, trade terms, evolution over time and the
justification of the action requested]
Regina Birago owusu is a Ghanaian businesswoman, who has been in business for over eighteen (18) years.
The business is solely managed by her, but she is being assisted by her daughter who also takes active part in
the daily affairs of the business. Her shop is located in Adum near Buchies spot, Kumasi.
Client is into the wholesale and retail of both local and foreign paints. Client’s suppliers are Azar and also
imports from other countries. Customer’s mode of sale is both cash and credit. She supplies to some of her
credit-worthy customers and also gives 12 days period to be repaid.
Borrower assessed a loan facility of GHS 25,000.00 in December 2017 for six months and paid off in June
2018 without any default. The facility really improved clients’ purchases level and made her meet most
demands of her customers.
1.1 Purpose:
Regina Birago owusu is requesting for a loan facility of GH 25,000 for six months to help her purchase
additional stocks to meet her customers demand.
Confidential Page 2
INTERIM NEW RENEWAL Excess Over Limit Extension

FACILITY TYPE AMOUNT PURPOSE TENOR SECURITY INTEREST FEES & REPAYMENT
RATE COM. MODE/SOURCE
LOAN GHS To augment 6 1) 2009 Toyota 3.5% 3.5% Equal Monthly
25,000 working capital in Months Camry with (straight instalment from
the purchasing of OMV of GHS line) Business
more stocks to meet 45,000.00 and Proceeds
customers demand. FSV of GHS
31,500.00
Already held
2) Assignment of
stock worth
GHS 35,000.00
TOTAL GHS GHS

LIMIT(A) 25,000 875
COMMENT ON APPLICATION/JUSTIFICATION
Regina Birago owusu Is a customer to Adum branch who is a wholesaler and retailer of both local and foreign paints in the
Ashanti Region, Bibiani, Sunyani. Customer operates in Adum, client is requesting for a Loan Facility of 25,000.00 for 6
months to augment her working capital to purchase stock for sale to meet demand of her customers.
Client operates a satisfactory account with Abii. Borrower’s turnovers are good and cash flow is adequate.
We recommend approval of facility based on her cash flow, credit worthiness and ability to keep and maintain client’s full
business.
Justification:
 The business is managed by an experience entrepreneur who is well vested in the industry of business with lots of
clients.
 Ability to keep the full business upon successful approval of facility.
 Credit worthiness of borrower, Client never defaulted from the loan of GHS 25,000.00 ABii disbursed to her in
2017.
 Our intention to get very good referrals from customer.
 Expected high turnover from customer which will give us floating funds.
 The collateral proposed provide sufficient cover
 Client is a good customer and her turnovers are very encouraging per ABii statement.
We recommend borrower’s request for approval base on the justification above.
Confidential Page 3
LIABILITY HISTORY WITH ABii

DATE EXPIRY CURRENT
FACILITY TYPE LIMIT PAID OFF DATE SECURITY
AVAILED DATE BALANCE
LOAN N/A 29-12-17 29-06-18 29-06-18 10,967.86 VEHICLE
COMMENT
TOTAL
N/A
EXPOSURE (A+B)
LIABILITY HISTORY WITH OTHER BANKS

DATE EXPIRY CURRENT
FACILITY TYPE LIMIT PAID OFF DATE SECURITY
AVAILED DATE BALANCE
N/A N/A N/A N/A N/A N/A N/A
COMMENT Client is not indebted to any financial institution

GLOBAL
N/A
LIMIT(A+B+C)
TYPE OWNERSHIP LOCATION OMV FSV
2007 Toyota Corolla with Borrower Kumasi GHS 45,000 GHS 31,500
Reg. AS 7110-17 and chasis
4T1BE46K99U398823
Assignment of stock GHS 35,000
Total
SECURITY ANALYSIS FROM PROPERTY INSPECTION
1.2. Highlights on Last Credit Facility with ABii:

[1] Did borrower pay all facilities on time or keep OD within limit? [Tick]: Yes* N/A
[2] Did borrower fulfill all previous conditions? [Tick]: Yes* N/A
1.3. Analysis of Bank statement(s) Deposits with other Bank]
ABii National S & L

MONTH DEBIT CREDIT
January 2018 96,869.00 121,300.00
February 42,138.00 40,100.00
March 21,687.00 21,750.00
April 8,406.14 8,600.00
May 14,777.00 14,600.00
June 15,167.00 32,340.00
July 44,720.00 39,740.00
August 47,900.00 37,920.00
September 17,130.00 19,040.00
Confidential Page 4
October 30,850.00 32,305.00

November 41,700.00 35,410.00
December 17,500.00 17,330.00
Total 398,844.14 420,435.00
Average 33,237.01 35,036.25
1.4. Brief Notes on Account Statistics and Comments on A/C evolution [+/-] with ABii.
From the client’s account statistics above, the total credit turnover is GHS 420,435.00 with an average
turnover of GHS 35,036.25 whereas the total debit turnover is GHS 398,844.14 with an average turnover of
GHS 33,237.01. Client operates a satisfactory account with ABii. Client’s turnovers are good which indicates
she is in the position to pay the loan. Inflows are mainly from sales proceeds and withdrawals were mainly
for the purchases of more goods to add up the stock. However, in the month of April, there was low
turnovers because, sales was low. Borrower has been asked to operate the accounts well to boost her
turnovers.
The collateral provided is adequate and provide sufficient cover for the facility.
1.5. Conditions Precedent

 Duly accepted offer letter signed by the authorized signatories to the account of the borrower.
 Receipt of signed offer letter accepting facility
 Satisfaction of all conditions precedent to drawdown.
 Transfer of vehicle ownership into ABii’s name
 Collateral vehicle will be insured making ABii the 1st loss payee.
 Spare vehicle key to be kept with ABii National
 Upfront payment of the facility fees.
1.6. Conditions Subsequent for Present Facility

Client to channel 100% of business proceed to account with ABii.
1.7. Transaction Dynamics

 Upon approval of the facility, an Offer Letter will be issued to customer.
 Receipt of signed offer letter accepting facility
 Satisfaction of all conditions precedent to drawdown.
 Loan will be made available to customer upon meeting all condition precedent
1.8. Income benefit to ABii
Income Rate Amount (GH¢)

Facility fee 3.5% 875.00
Interest Income 42% 5,250.00
Total 6,125.00
Cost of Funds 28% 700.00
Net Income 5,425.00
1.9. Comments on income benefits:

From the breakdown above, the revenue to be accrued by Abii National assuming the amount is fully utilised
over 6 months is GHS 5,425.00
2.0. Key Concerns
Confidential Page 5
 This is client’s second loan cycle, the first facility really helped improve clients’ purchases level and
made her meet most demands of her customers. Borrower never defaulted in her repayment.
 Client has a competitive advantage over her competitors due to her experience in the business and
customer base
 The business is located at where her products are needed most and she has been in this line of
business over a period of eighteen years.
2.1. Conclusion/Recommendation:
The facility of GHS 25,000.00 is recommended for Management’s approval based on the following:
 Customer has ready market for her products and would therefore not delay in making sales hence
making loan repayment much easier.
 The facility would enable customer to make purchases and would therefore be able to meet the
growing demands of his customers.
 The customer’s business is located at a very good location which gives her opportunity to win new
customers hence increase in demand of his products.
 We hope to get more Referrals through this client considering her business and how long she has
been in business.
 ABii National stands to gain a net income of GHS 5,425.00 from a loan facility of GHS 25,000.00
for 6 months all things being equal.
 Client has been operating her account well and has been advised to do more since the facility will
enable her increase her stocks.
Confidential Page 6
Prepared by: Reviewed by

Henry Howard Ankai Ebenezer Asafo-Adjei
(Relationship Officer) (Branch Manager)
Comments By Ex.Head, Business Development
Concurred by:
Christian Duodu
……………………………
(Ex.Head, Business Development)
Confidential Page 7
Confidential Page 8

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ABii National CREDIT ANALYSIS MEMO

BUSINESS ACTIVITY PAINTS ACCOUNT NO:

OWNERSHIP STRUCTURE RELATED COMPANIES

BORROWER’S CONTACT DETAILS

E-MAIL ADDRESS N/A.

INTERIM NEW RENEWAL Excess Over Limit Extension

TOTAL GHS GHS

LIABILITY HISTORY WITH ABii

LIABILITY HISTORY WITH OTHER BANKS

COMMENT Client is not indebted to any financial institution

TYPE OWNERSHIP LOCATION OMV FSV

1.2. Highlights on Last Credit Facility with ABii:

ABii National S & L

October 30,850.00 32,305.00

1.5. Conditions Precedent

1.6. Conditions Subsequent for Present Facility

1.7. Transaction Dynamics

1.8. Income benefit to ABii

Income Rate Amount (GH¢)

1.9. Comments on income benefits:

2.0. Key Concerns

Prepared by: Reviewed by

(Relationship Officer) (Branch Manager)

Comments By Ex.Head, Business Development

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