Loan- and bank guarantee

Transactions subject to simplified procedure

The cooperation agreements entered into with the below banks also contain the terms and conditions of lending and guarantee undertaking. In the frame of these we undertake guarantee through a simplified procedure: if client’s loan application complies with the criteria set forth by the agreement, we do not asses separately the application. This way the time requirement of administration is considerably decreased.

Transactions subject to individual assessment

Our absolute guarantee related to the non-standardized loan/bank guarantee transactions of loan institutions may be requested by the submission of an individual absolute guarantee request. In this case we assume guarantee in the frame of a standard procedure, based on individual judgement.

These loan/bank guarantee transactions usually relate to the financing of the investments of the enterprises, current asset development, and accomplishment of certain projects or the maintenance of the general business management, where the business risks are higher than the average and/or the collateral background is not sufficient.

We evaluate the requests in terms of business risk, the quality and value of the collateral is of secondary importance. When assessing the business risks we evaluate the market situation and future prospects of the enterprise, competitiveness of the product/service, the performance of the enterprise so far and the expected debts service ability by using the balance sheet report and the business plan. The commitment of the ownership group towards the enterprise is extremely important, and the assessment of the material and existence-related risk taking ability of the owners.

We also support starting up enterprises/project companies in getting loans, the basis of the judgement shall always be the business plan in these cases.

In the case of loans/bank guarantee transactions carrying special risk or in the case of financing an especially large project we are ready to make our statement about the absolute guarantee opportunities as part of the banking decision preparatory procedure.

In the case of transactions subject to individual judgement according to our Rules and Regulations we have 15 working business days to make our decision; the actual processing time is shorter.

We decide based on the evaluation of the risk factors whether we are intending to support the given request. We send a notification to the loan institution about the decision through fax, which shall mean and irrevocable commitment from our side upon the approval of the request. We may define criteria for the absolute guarantee, and in the case of accumulated risks we may also make an offer for absolute guarantee with a lower amount.