Short-term financing

Short-term financing of the working capital

Different forms of short-term financings, adjusted to the needs of your companies, are available to corporate clients. Conditions for granting of the Bank’s loans depend on the type of financial arrangement, creditworthiness and history of relationship with the client, length of repayment period and the quality of offered collaterals.

Conditions for short-term financing of the working capital:

Repayment period up to 12 months, with monthly repayment

For financing of production, import and export

Other benefits:

• Amount up to 400,000 EUR
• Funds’ utilisation at once or successively, when necessary
• Client’s share min. 1% of the financing amount with collaterals

The Bank shall approve the following types of short-term financing:

• Revolving – utilisation and reimbursement of funds when required by the client within duration of revolving
• Overdraft – up to 30% of average turnover in the past 3 months with one-time return upon maturity
• Annuity repayment – monthly, quarterly, semi-annual annuities
• Repayment in instalments
• One-time maturity (Bullet) – utilisation of funds with maturity at the end of the period

Clients can use allowed overdraft for the payment of goods or services through credit transfer order for payment or cash withdrawal at the Bank’s Teller Units. The product is based on the Qard Hasan principle (no profit margin included).

Maximum overdraft amount is up to 30% of average turnover for the past three months, implemented through BBI account. The client must settle its debit balance on a transaction account on the maturity date.

Real estate mortgage, property pledge, bills of exchange or guarantors can serve as collateral.

Required documentation for the submission of Application Form for granting of short-term financings is provided below.

• Application Form defining the purpose, amount and repayment period;
• Decision on registration in the Court Register with all changes and amendments;
• Excerpt from the Court Register not older than 90 days;
• Articles of Association and Articles of Foundation of the company;
• ID and VAT number;
• Notice from the Statistics Bureau on classification by activities;
• Certificate from authorized Tax Administration/Indirect Tax Authority that there are no outstanding liabilities based on public income;
• Copy ID cards and Residence Certificate of persons authorized for representation;
• Statement on related entities;
• Consent for inspection at the Central Loan Register;
• Report of the External Auditor (only for joint stock companies),
• Balance Sheet and Income Statement for the past two years, as well as preliminary financial indicators for the current period;
• Documentation for securing financing and financing collaterals determined by the Bank, in accordance with its business policy and depending on the client’s creditworthiness.

In addition to the aforementioned, BBI Bank has the right to request other documents in accordance with the Bank’s internal documents.