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are short or medium-term loans
Intended to address the day-to-day operations of a business.
It is a loan funding immediate needs, allowing the temporary build-up of inventory in advance, financing of receivables during peak selling season, for purchase of raw materials/ merchandise when sales and cash inflow processes do not match, and paying expenses such as payroll and accounts payable.
Availed for financing business administration activities
The tenure and mode of repayment of working capital loans shall be set by considering the working capital cycle of the business.
Fresh-term loans may be extended to borrowers who have established banking relationship with banks as a borrower or depositor.
Customers applying for fresh term loans should provide up-to-date and audited financial statements if the facility is Birr five million and above, or the amount the bank may set internally.

are medium or long term loans
Availed for covering capital expenditures or non-current assets, which are assumed to cover costs of capital goods, non-recurrent renovations, research and development, and long-term business programs.
Acquisition of businesses or investment properties, business reorganization, and financial reconstruction.