SME LOAN NOTES (FICTIONAL SAMPLE)
Customer: Customer #SME-2231, poultry and feed distributor, Kaduna. In business 7 years.
Request: N45,000,000 working capital facility, 12 months, to stock feed ahead of festive season.
Turnover (audited 2025): N310m. Net profit: N22m. Existing facility: N10m overdraft, well conducted.
Repayment source: sales proceeds via POS and transfers, avg monthly inflow N26m.
Collateral: legal mortgage on warehouse valued N60m (2025 valuation), personal guarantee of MD.
Risks: feed price volatility, FX on imported maize, disease outbreak (bird flu), concentration on 3 large buyers.
Mitigants: insurance on stock, domiciliation of proceeds, monthly stock inspection.
RM view: supportive.