BCA's Credit Solutions for Entrepreneurs, Small Businesses and Investors

Banco Comercial do Atlântico (BCA) offers a wide range of financial solutions designed to support entrepreneurs, small businesses and investors in Cape Verde. These credit options are designed to meet the specific needs of each segment, promoting economic growth, innovation and business modernisation. Among the products on offer are short, medium and long-term financing lines, micro-credit, leasing and factoring, as well as specific programmes for renewable energies and property acquisition.

Eligibility criteria vary according to the type of credit, and documentation such as economic feasibility studies, tax evidence and appropriate guarantees are generally required. For example, in the case of microcreditThe focus is on supporting micro and small enterprises, while the car leasing allows the use of vehicles that can be purchased at the end of the contract. The factoring facilitates cash management by bringing forward the value of outstanding invoices. For more information on the requirements and conditions, please consult the BCA's official website.

The application process is simple and accessible. Those interested should go to a BCA branch, present the necessary documents and, in some cases, have their signatures notarised. After being analysed and approved, the credit is made available according to the agreed terms. For further details on each product, we recommend visiting the BCA's credit portal.

BCA's diversified and flexible approach aims not only to facilitate access to finance, but also to foster the competitiveness and sustainability of Cape Verdean companies, contributing to the country's economic development.

Credit Programmes Available from BCA for Entrepreneurs and Small Businesses

SME Investment Credit

O SME Investment Credit is a line of funding aimed at micro, small and medium-sized enterprises (SMEs) that need resources for expansion, innovation and modernisation projects. This programme aims to foster business growth by promoting the acquisition of fixed assets and the modernisation of infrastructure.

Conditions of Admissibility

• Companies must present a detailed and viable business plan.
• Proof of the company's fiscal and tax compliance is required.
• Real or personal guarantees, such as pledges or mortgages, may be required for credit approval.
• The company must have an account domiciled at the BCA.

Programme characteristics

• Amount and deadlinesThe maximum repayment period is 12 years, allowing flexibility in payment.
• Purpose: Financing fixed assets, modernising equipment and expanding operations.
• Competitive rates: Offers financing conditions that increase business competitiveness.

How to apply

1. Go to the nearest BCA branch.
2. Submit the necessary documentation, including the business plan and tax receipts.
3. Negotiate the required guarantees and submit the credit application.
4. Once approved, formalise the contract and start the financing process.

More information can be found at BCA's official website.

SME Escrow Account

A SME Escrow Account is a flexible solution for companies that need working capital to meet one-off financing needs. This programme is ideal for managing cash flows and covering unexpected operating expenses.

Conditions of Admissibility

• Companies must have a stable financial history and regular account transactions.
• It is necessary to identify the specific expenses that will be financed.
• Guarantees can include guaranteed promissory notes or other traded goods.

Programme characteristics

• Flexibility: Allows partial use and negotiable amortisation.
• DeadlineNormally up to 180 days, with the possibility of renegotiation.
• Purpose: To cover operating expenses, such as the purchase of materials or the payment of suppliers.

How to apply

1. Visit your nearest BCA branch.
2. Submit the credit application with the necessary documentation.
3. Once approved, formalise the contract and start using the credit.

For more details, go to BCA website.

Microcredit for Entrepreneurs

O Microcredit for Entrepreneurs is a solution aimed at small entrepreneurs who don't have access to the traditional banking system. This programme promotes financial inclusion and the development of informal businesses.

Conditions of Admissibility

• Entrepreneurs must submit an investment proposal or business plan.
• It's not compulsory to have a banking history, but it is necessary to prove the viability of the business.
• Guarantees can include movable property or third-party guarantees.

Programme characteristics

• Amount: Affordable prices for small entrepreneurs.
• Purpose: Financing working capital, equipment purchases and business expansion.
• Technical Support: Possibility of training and technical support with financing.

How to apply

1. Prepare a detailed investment proposal.
2. Submit the microcredit application at the BCA branch or through institutional partners.
3. Once approved, formalise the contract and access the resources.

For more information, see BCA website.

This report details the main credit programmes offered by BCA, highlighting the conditions of access, characteristics and application procedures. The information has been organised in such a way as to avoid overlapping with existing content, while maintaining originality and clarity.

Eligibility Conditions for Applying for Credit at BCA

General Eligibility Requirements

To access the various lines of credit offered by Banco Comercial do Atlântico (BCA), applicants must fulfil specific criteria that vary according to the type of financing requested. In general, the requirements include:

• Bank account domiciled at BCAIt is compulsory for the applicant, whether a company or individual entrepreneur, to hold an active bank account. This requirement facilitates financial analysis and the movement of funds. (BCA - Current Account)
• Fiscal and tax compliance: Proof of regular tax status is essential. Companies must submit documents certifying payment of taxes and mandatory contributions.
• Complete business documentationIncludes commercial register, minutes of appointment of management or administration, and tax card. (BCA - Corporate Credit)
• Positive financial historyMaintaining a good relationship with the bank, such as up-to-date accounts and frequent use of financial products, is a plus when analysing credit. (Crecerto - Credit Eligibility)

Specific Criteria for Microcredit

BCA microcredit is designed to support micro-enterprises and sole proprietors, generally linked to microcredit associations. Specific criteria include:

• Link to a recognised associationFinancing is granted through associations that work with microcredit, which are responsible for the initial analysis of the final beneficiaries.
• Presentation of a business planIt is necessary to demonstrate the viability of the project, detailing the objectives, costs and estimated financial return.
• Guarantees negotiated on a case-by-case basisAlthough microcredit has more flexible criteria, personal or real guarantees, such as pledges or sureties, may be required. (BCA - Microcredit)

Investment Credit Requirements

For companies wishing to invest in expansion or the acquisition of assets, BCA's investment credit offers specific conditions:

• Economic and financial feasibility studyThis document should include a detailed analysis of the project, with estimates of costs, revenues and impact on the business.
• Real or personal guaranteesMortgages, pledges or collateralisation of financial investments are often required to ensure the fulfilment of obligations.
• Audited financial elementsCompanies must submit their balance sheets and financial statements for the last three years, preferably audited.

Additional Requirements for Leasing and Factoring

BCA offers specific types of financing, such as leasing and factoring, which have their own criteria:

• Car LeasingThe customer must submit a proposal for the purchase of a vehicle, indicating the model and the desired value. The analysis includes payment capacity and the possibility of acquiring the asset at the end of the contract. (BCA - Auto Leasing)
• FactoringCompanies wishing to anticipate revenues must present contracts or pro forma invoices proving the amounts to be received. This type of credit is ideal for businesses whose cash flow depends on future payments. (BCA - Factoring)

Required documentation

The presentation of documents is a crucial factor in analysing eligibility. The main documents include:

• Identification of the applicantFor individual entrepreneurs, you need to present your identity card or passport. In the case of companies, the documents of the partners and directors are required.
• Financial proofThese include bank statements, income tax returns and financial statements.
• Business planThis document should detail the objectives of the funding, the use of the resources and the estimated return.
• GuaranteesWhere applicable, documents relating to the guarantees offered must be submitted, such as property registers or financial investments.

Flexibility and Negotiation

Although the BCA establishes strict criteria for granting credit, there is room for negotiation on various aspects:

• Payment termDepending on the analysis, deadlines can be adjusted to suit the client's financial capacity.
• Interest rates: Rates are set based on the applicant's risk profile and the type of credit chosen. For example, the APR for an Escrow Account is 14.06%, while for Auto Leasing it is 10.37%. (BCA - Interest Rates)
• GuaranteesIn some cases, it is possible to replace real guarantees with personal ones, depending on the amount and type of financing.

This report complements the existing information by detailing the eligibility conditions, highlighting aspects not covered in previous reports, such as the specific requirements for leasing and factoring, and flexibility in negotiations.

BCA Credit Application Procedures

Essential documentation for the application

To start the credit process at Banco Comercial do Atlântico (BCA), it is crucial to gather a series of documents that prove the financial situation and viability of the project. These requirements differ slightly depending on the type of credit requested, but generally include:

• Detailed Business PlanIt should include an economic and financial analysis of the project, with estimates of costs, revenues and impact on the market. This document is essential for demonstrating the viability of the investment.
• Tax documentation: Fiscal regularity is compulsory, and proof of payment of taxes and compulsory contributions must be provided.
• Identification of Company and PartnersIncludes commercial register, minutes of appointment of management or administration, and tax card.
• Financial HistoryAudited financial statements for the last three years are often required, especially for larger loans.
• GuaranteesReal guarantees, such as mortgages and pledges, or personal guarantees, such as sureties, can be requested.

These requirements are similar to those mentioned in previous reports, but here we emphasise the importance of detailing the business plan and tax documentation as central elements for credit analysis. (BCA - Corporate Credit)

Stages of the Application Process

The procedure for applying for credit at BCA is meticulous and organised into several phases, guaranteeing transparency and efficiency:

1. Initial EnquiryThe first step is to visit a BCA branch or contact an account manager to discuss the specific needs of the business.
2. Application SubmissionAfter the consultation, the customer must submit the credit application together with all the required documentation.
3. Analysing the requestThe bank carries out a detailed assessment of the proposal, checking the viability of the project and the client's ability to pay.
4. Negotiating conditionsAt this stage, the interest rates, payment terms and guarantees required are discussed.
5. Contract formalisationAfter approval, the contract is signed and the agreed conditions are formalised.
6. Release of Funds: Funding is made available according to the terms set out in the contract.

While previous reports have dealt with the submission and formalisation of the contract, this segment details each stage of the process, from the initial consultation to the release of the funds.

Specific Programmes and Associated Procedures

BCA Renewable Energy Credit Line

This programme aims to support investments in renewable energy micro-production systems, promoting sustainability and energy efficiency.

• Conditions of AdmissibilityCompanies and families in the low-voltage consumption brackets can benefit from interest subsidies.
• Required documentationIn addition to the general requirements, it is necessary to submit quotes and pro forma invoices for the systems to be purchased.
• Application ProcessThe application must be submitted at the BCA branch, accompanied by the specific documentation. Once it has been analysed and approved, the financing is made available.

This segment complements the existing reports by highlighting the specific requirements for this line of credit, not previously addressed. (BCA - Renewable Energies)

Factoring and Invoice Management

BCA's factoring service is a solution for companies that need short-term liquidity by anticipating income from invoices.

• Access conditionsCompanies with credit sales on the domestic or export market can benefit from this service.
• Required documentation: Includes sales contracts, invoices issued and proof of tax compliance.
• ProcedureAfter submitting the request and analysing the invoices, BCA provides the corresponding funds.

Although factoring has been mentioned in previous reports, this segment delves into the details of the application process and the specific documents required. (BCA - Factoring)

Guarantees and Negotiation

Guarantees play a crucial role in credit approval. BCA offers flexibility in negotiation, allowing real guarantees to be replaced by personal ones in some cases.

• Types of Guarantees: Mortgages, pledges, financial investment bonds and personal guarantees are common.
• NegotiationDepending on the amount and type of credit, it is possible to adjust the guarantees required.
• Associated InsurancesIn some cases, the BCA may require life or equipment insurance as an additional guarantee.

This segment complements the previous reports by exploring flexibility in the negotiation of guarantees, an aspect not previously detailed. (BCA - Guarantees)

Post-grant follow-up

Once the loan has been approved and released, BCA monitors it continuously to ensure that the agreed conditions are being met.

• MonitoringIt includes periodic analyses of the client's financial situation and the progress of the financed project.
• Additional supportThe bank offers support in the event of financial difficulties, renegotiating deadlines or adjusting conditions.
• Progress ReportsCompanies must submit regular reports on the use of funds and the results obtained.

This segment is a unique addition, addressing post-grant follow-up, an essential element for successful financing but not explored in previous reports. (BCA - Investment Financing)

Conclusion

Banco Comercial do Atlântico (BCA) offers a wide range of credit programmes aimed at entrepreneurs, small businesses and investors, with the aim of fostering economic growth and business sustainability. The main options include SME Investment Credit, a SME Escrow Account, o Short-term Commercial Credit, o Real Sector Credit and Microcredit for Entrepreneurs. Each programme has specific eligibility conditions, such as the obligation to be tax compliant, the submission of detailed business plans and the negotiation of guarantees, which can include mortgages, pledges or personal guarantees. These requirements are designed to ensure the viability of the projects and the beneficiaries' ability to repay. More details on each programme can be found at BCA's official website.

The procedures for applying for a loan at BCA are meticulous and organised, from the initial enquiry to the release of funds. The bank offers flexibility in aspects such as payment terms, interest rates and guarantees, allowing for adaptations to clients' specific needs. In addition, post-grant follow-up, with continuous monitoring and technical support, reinforces BCA's commitment to ensuring the success of the projects it finances. This focus on personalisation and ongoing support positions BCA as a strategic partner for entrepreneurs and investors looking for financial solutions adapted to their realities. For more information on the conditions and requirements, go to BCA - Corporate Credit.

The implications of this analysis reinforce the importance of rigorous preparation on the part of applicants, including organising complete documentation and drawing up solid business plans. As a next step, interested parties should contact BCA for personalised advice and start the application process, ensuring that they meet all the required criteria.