Term loan

Term loan is aimed at operating and investment needs of a customer. A draw-down of a loan is strictly monitored. Only receipts, related to the loan purpose, may be paid. Loan repayments are agreed in a repayment schedule, agreed before in the loan agreement.

Operating term loan

Short-term financing of operating needs of a customer, i.e. repayment of short-term trade payables for the purchase of stocks, refinancing of short-term trade receivables, 1- year maturity.

Investment term loan

Purchase or reconstruction of fixed assets. It may be a single loan or according to investment needs of a customer. Medium-term or long-term loan, the grace period of 1 year.

Credit line

Short-term operating needs of a customer, aimed at a smooth course of a production and business activities. Credit line is provided only to customers, who need a flexible financing to ensure production and sales, i.e. a loan is drawn and repaid irregularly, according to needs. There is no repayment schedule. This loan is provided only to customers with financial stability, usually for a period of 1 year. Lower interest cost represents an advantage, as the customer pays interest only on actually drawn funds.

Overdraft loan

This is the only loan (in addition to bill of exchange discount), where purpose is not monitored. There is an overdraft limit on a customer´s current account. It is provided only to selected customers with a stable financial situation. It is used for the coverage of a short-term liquidity decrease. The loan draw-down and repayments are irregular, in line with customer´s needs. There is no repayment or draw-down schedule. Clearing repayments may be agreed with a customer. Loan amortisation is usually 1 year. Lower interest cost represents an advantage, as the customer pays interest only on actually drawn funds.

Discount Credit

The bank discounts bills of exchange to its customers, based on agreed conditions. A bill is valid if it is accepted by a direct borrower and it has to represent a business transaction, i.e. payment by the bill. Discount loan is used for short- term operating needs and it secures a smooth course of business activities.

Loan purpose

Draw-down of any loan is strictly monitored by a loan officer. A customer submits the receipts, in line with the loan purpose, to the bank and they will be paid out by the Bank subsequently. The only exception with respect to the loan purpose is an overdraft.

Bank guarantees

The bank will issue an irrevocable and unconditional bank guarantee, based on customer´s requirements, in favour of a beneficiary. Thus the bank takes over the commitment towards the beneficiary also in case, the customer does not meet the conditions, agreed in the agreement. Therefore issued bank guarantees have to be secured by financial or other assets. If a beneficiary asks for a payment due to an issued bank guarantee, the Bank will use customer´s funds (covered letter of credit) or it will provide a short-term loan to a customer, based on the General conditions (uncovered letter of credit). The Bank may issue the following types of bank guarantees:

1.payment guarantee for:
a) aval of bill of exchange
b) lease repayments
c) payment of delivered goods/services
d) payment of customs debt
e) loan repayment

2.non-payment guarantee for:
a) tender
b) advance payment
c) performance of work
d) check-off
e) lost documents

The Bank advices of a guarantee issued by other bank, either without a payment commitment for the bank, or it confirms the guarantee.