A business applying for a commercial loan can be a limited liability company, a sole trader or a partnership.

While there is no set standard for commercial loans; any organization wanting to acquire an asset for hire purchase or lease should consider the following:

• Age of business: prospective business customer should have been in operation for at least twelve months.
• Cash flow & income: prospective business customer should be able to furnish the bank with six months banking statements evidencing cash flows. Incorporated entities should be able to produce management accounts or audited financials to determine profitability.
• Location:prospective borrowers must be domiciled and incorporated in Trinidad & Tobago.
• Guarantor: first time borrowers may require a personal guarantee by a Director of the company.

Financing Options

• Fixed Asset Financing Options

DIFFERENCES	HIRE PURCHASE	FINANCE LEASE	OPERATING LEASE
Purpose	Private vehicle purchase Commercial vehicle purchase Equipment purchase	Vehicle purchase Commercial vehicle purchase Equipment purchase	Vehicle purchase Commercial vehicle purchase Equipment purchase
Initial investment	None required	100% VAT paid upfront	Negotiable
Down payment	Negotiable	1st month instalment	Negotiable
Tax incentive	Interest and depreciation expenses are tax deductible	Interest and depreciation expenses are tax deductible	Lease payments fully deductible for the term of the contract
Contract duration	Vehicles – up to 84 months Equipment – up to 60 months	Vehicles – up to 84 months Equipment – up to 60 months	Vehicles – up to 84 months Equipment – up to 60 months
Option at end of contract	Registered in customer’s name; no transfer required	Registered in name of bank; final instalment is a balloon payment to effect vehicle transfer in customer’s name	Registered in name of bank; option to purchase.

• Equity Financing

You can use an unencumbered asset as security to borrow funds for your business needs. We can lend up 80% the value of the asset to consolidate debts or finance working capital needs.

Equity financing would require a registered mortgage over the proposed asset for which legal fees would be incurred.

Down Payment
Your down payment would depend on the type and face value of the vehicle that you need and the predetermined period of the loan agreement.

• Preferred option: Monthly ACH payments directly from an account in your name at a local Commercial Bank. A template of the ACH authorisation form is attached in the next section tab.
• Alternate option: At the discretion of the bank, it may be possible to make your monthly payment through any of the branches island wide on the mutually pre-agreed date of each month given on your loan.
• Payee option: Monthly instalment payments can be made as a bill payment or payee option through online banking platforms of a local commercial bank. Client can inquire how this can be facilitated should they prefer this option of repayment.

To comply with our obligations under the Proceeds of Crime Act, Chap. 11.27 (as amended), the Financial Obligations Regulations, 2010 (as amended) and the Central Bank of Trinidad & Tobago AML/ CFT guidelines, we are mandated by law to request the following:

• Two (2) forms of identification for each:
  i. director
  ii. signatory
  iii. corporate secretary; and
  iv. shareholder with 10% or more ownership
• Official list of Directors and Authorized Signatories for this account along with specimen signatures. (Must be listed on the company's letterhead)
• Audited Financials or Management Accounts for the last three (3) years
• Certificate of Incorporation and Articles of Association
• Certificate and Articles of Continuance (if incorporated before 1996)
• Annual return (for the previous year)
• Board Resolution (Signed by Directors in agreement to enter into a business relationship and authorizing the account signatories)
• By Laws (must be certified by Company Director or Company Secretary)
• A signed Director's Statement or a certificate by the Company's Secretary outlining the nature of the company's business.
• Company Stamp to be placed on the completed KYC form