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  1. Public Institutions
  2. Financing
  3. Loans
  4. Revolving Loan for Working Capital

Revolving Loan for Working Capital

Short-term loan for financing working capital needs. It is used to cover current expenses on ordinary activities of the borrower.

The loan may be with a general purpose or for contract financing.

Revolving Loan for Working Capital

Advantages

  • Flexibility of payments You have additional working capital that you can use at your convenience.
  • Speed and accessibility You can use the electronic channel to order payments to your counterparts without leaving the office.
  • Opportunity to plan payments having a predetermined repayment schedule Wide range of the purpose of the loan
  • Opportunity for repeated extension of the loan agreement Presented after analyzing the credit risk of the client.

Whom is it for?

Local and foreign companies, public and financial institutions that have a need for working capital.

This type of loan is suitable for financing operations and activities that are with cyclical character and periodically recurring payments or to off-set unfavorable for the borrower mismatches between the receivables collection period and the account payables period.

Requirements for Granting the Loan

When funding contracts you are required to present cost-proving documents.

This requirement do not apply to general purpose loans.

Term

The term of financing is up to 36 months. The borrower is in a position to utilize repeatedly the maximum agreed credit limit within a certain loan utilization period. The utilization might be done once or in tranches depending on the parameters of the deal.

Collateral

The loan may be secured by assets of the borrower or of third parties, established in favour of the bank as per the procedure and in the form established by law. The assets could be:

  • Real Estate
  • Movable assets
  • Financial assets
  • Valuables
  • Securities
  • Mutual Funds
  • Receivables from third parties, etc.

Property insurance of collaterals is required.

Repayment

The repayment of the granted amount can be carried out either by means on decreasing plafond, or as in some cases bullet repayment, depending on the financed transaction.

Sources of repayment of the loan can be of two types, depending on the purpose of the deal:

  • Cash flow generated by the main activity of the Company - for general purpose loans
  • Cash flow generated by the proceeds generated by the contract execution - for contract financing loans

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