Drawing Against Un-cleared Effects (DAUE)
This refers to funds drawn on a customer‟s account against cheques (normally only local currency) deposited to the same account but not yet processed and cleared through the cheque clearing system. Tenor will be matched to the local clearing period for the currency in which the cheques/effects are drawn. Repayment will be automatic through the clearance of the uncleared cheques. A limit will be agreed on the account up to which the customer may overdraw. Once the limit is utilised interest will be charged on outstanding utilisation on a daily basis.
Procedure to be followed for all above products
The customer should forward the following documents to Standard Charted Bank for credit evaluation:
- Written request for the facilities and security which could be provided from Standard Charted Bank
- 5 year ( historic ) profitable audited financials
- Customer is not listed in the Credit Information Bureau for default of any other loan facility
- 2 bank references acceptable to Standard Charted Bank
- In operation for over 5 years
- Business Plan with projections for 2 years
- Top 10 Buyers / Suppliers
On receipt of the above financials OCC will carry out a detail analysis of the information submitted and provided it falls within the acceptable credit requirements of Standard Charted Bank, a site visit to the company and factory will be done. Terms and conditions pertaining to the borrowing will be listed in the indicative letter of offer by the Standard Charted Bank to the customer. Once customer accepts the indicative letter of offer, a letter of offer will be sent for acceptance to the company‟s board of directors.