This is provision of short-term loans for up to 1 year, secured by existing receivables to acceptable customers. In some cases, it is used as supplementary security/insurance of the receivables. The supplementary security may be a blank note (improved by an aval of a creditworthy company or shareholders as natural persons) and a notarial deed (or any other types of security according to the character of the specific business transaction). The most often used products: blocked overdraft facility, structuralised overdraft facility, revolving call-loan.

Conditions

• existing receivables to acceptable customers,
• allowing the assignment or pledge of receivables from contracts, confirmed orders,
• limited mutual receivable set-off or a document proving non-existence of any obligations to the financed customers
• minimum maturity of the receivables 14 days,
• financing of 70%-90% of the nominal value of the receivable.

Benefits

• simple and quick way of obtaining a loan in TB,
• this type of financing is beneficial for those firms which need to relieve their cash-flow for a short-time,
• particularly appropriate for manufacturing companies selling products, agency companies, and export firms,
• the client does not need any security, other than the existing receivables (in the event they are credit-worthy enough for the bank),
• quick and flexible service according to specific needs of the client.

Target group: legal persons, particularly trading and manufacturing companies, export-oriented companies, small and medium businesses.