1. Introduction revolving credit line
Under conditions of rapid development of banking market of the world the permanent renovation of banking products for small and medium enterprises on loan granting and service of economic segment is necessary and important for efficient and competitive functioning of BANK (hereinafter – the Bank).
2. Purpose revolving line of credit
- To offer the current and potential customers of the Bank the loan product competitive on terms of accepting decision and conditions for business support needs in replenishing the current assets and business developing;
- To enlarge the credit portfolio by increasing the qualitative average term loans with liquid security;
- Revolving credit line for financing the current assets and business development for customers of small and medium enterprises - description.
3 General product criteria
3.1. What is a revolving line of credit?
Revolving credit line for financing current assets and business developing – credit line for replenishing current assets, financing current activity, financing of working capital and business developing which the repeated issues and payments of loan funds in the frame of the fixed limit during the credit agreement.
Loan objects are working capital which envisages the next:
- financing of purchasing materials, raw materials, goods and other assets;
- financing of current activity, payment of current expenses concerning manufactor, processing and products sales;
- refinancing of current loan indebtedness for working capital reрlenishment and business development in other bank except the overdue indebtedness at the moment of the customer request to the Bank or problem indebtedness which emerged while analyzing the paying capacity of the customer.
Loan target purpose
Financing the assets obtained by the borrower, services and current expenses necessary for production, trading and service provision.
3.2. Target audience and requirements for the borrower
The legal entities and private individuals – entrepreneurs without registration of legal entity with the work term of business of more than 12 months (including the work term of the guarantor’s business).
Requirements for the borrower:
The Borrower is to meet the next conditions:
- be capable and legally capable person in accordance with the current legislation;
- not to have the overdue indebtedness of the basic debt amount for the last two years or interests on loans at the Bank and other banks more than 30 days;
- not to have claims, objections and court processes the object of which is more than 5 % of assets.