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Working capital financing

A loan for the company’s working capital helps to increase production output, settle accounts with suppliers and employees, maintain the required amount of the goods, satisfy an increasing demand for seasonal goods, offer your customers more beneficial payment terms, improve cash flow, etc. A loan can be obtained by the companies with stable financial state and current accounts opened with the bank, on which the biggest payment turnover has been concentrated within min. 6 months.

A loan to replenish the working capital is granted by the Bank in the form of an overdraft or a credit line with the term of up to one year. The company’s assets (real estate, supplies, debtors, etc.) may serve as loan collateral provided that the respective pledges are registered in the Land Book and/or Commercial Register of Enterprises.

Overdraft

Overdraft is a freely used credit limit linked to a current account. An available overdraft limit is calculated taking into account the amount of regular income to the company’s current account per month. Interest for the used and unused overdraft limit is paid monthly, while the entire principal amount of the overdraft must be paid up at the end of the term of the agreement. Any receipt to the account reduces automatically the used overdraft limit.

Credit Line

Credit line is a short-term loan of funds which allows your company to borrow the sum required to replenish working capital within the limit set by the Bank. The privilege of a credit line is a possibility for an enterprise to regulate its cash flows on its own, i.e. borrow the funds repeatedly, when required, within the credit line limit and pay up the debt in parts, when available funds occur. The entire unused credit line balance is available for payments settlement. Interest for the used and unused credit line limit is paid monthly, while the entire principal amount of the loan must be paid up at the end of the term of the agreement.

Processing a Loan

To process any of the loans above, you need to present the following documents:

1) an application for a loan for legal persons 2) legal documents

  • registration certificate
  • company’s charter
  • copies of owner’s/owners’ passports

3) financial documents

  • statement from the State Revenue Service on tax payment (not older than 1 month)
  • balance sheets:
    • the last annual report with a mark by the SRS (with a breakdown)
    • balance sheet for the current accounting period (with a breakdown)
    • P&L calculations for the current accounting period (with a breakdown)

4) other documents upon the Bank’s request