Benefits

The Aim of the guarantee is to facilitate access of companies, especially SMEs to funding. The guarantee works sharing risk borne by the bank.

Benefits for the Bank :

• Guarantee of a company of which the share capital is majority-owned by institutions: credibility of the signature;
• Institutional guarantee which means cash, readily available funds compared to conventional security;
• Key success factors of the partnership with banks: promptness expedition, responsiveness, neutrality with the banking sector, does not interfere in the relationship between the bank and its customers;
• Risk sharing : AFGC S.A supports part of the risk (compensation scheme in final loss);
• Guaranteed amounts are not considered for the calculation of own funds required to cover commitments at risk (negotiation of APIGA with the BCEAO);
• Second review, additional review of the risk related to applications submitted to the guarantee;
• Customer portfolio development.

Benefits for companies :

• Facilitating access to credit (strengthening the guarantees submitted to banks) ;
• Lowering funding cost (supporting part of the risk) ;
• Improvement of Bank-Company relationship ;
• Expansion of companies activities.

Benefits for the drawee :

• Facilitating the execution of contracts awarded to companies even in case of absence of advance payment ;
• Increasing the consumption of budget lines devoted to PIP and funds alloted to the government by development partners ;
• Contributing to the country development.