The world's local bankRevolving Working Capital Lines
The Revolving Lines are a working capital finance tool with a duration of up to 1 year subject to an annual review. The customer is allowed to draw down lines of credit under an approved limit, which are then repaid in a few monthly instalments. The repayment schedule is being discussed with the customer and is tailored to meet the trading cycle of the business. Revolving lines may be combined with various trade products into a combined limit, which will include import & export lines (documentary credits, deferred payment credits, etc) and import & export cash facilities, various types of guarantees and performance bonds, as well as traditional loan lines and overdrafts that may be utilised interchangeably under a single controlling limit. For a detailed information regarding the trade products and services please refer to the Trade and Supply Chain section of this site.
The commercial credit and trade facilities provided by our bank generally require adequate security cover to be provided by the customer. Security is not the primary factor for the assessment of a proposal, however the availability of an adequate collateral securing the extended commercial credit and trade facilities is necessary. We accept the following types of securities.
| Primary security | Additional security |
|---|---|
| Marginal Deposit; Term Deposit under lien | Pledge over plant, equipment, machinery & vehicles |
| Mortgage over land, as well as mortgage over residential & commercial property | Floating charge over stock |
| First Class Bank's Guarantee | Personal/Joint & Several/Corporate Guarantees |
The acceptable level of the security/facility ratio is determined taking into consideration the customer’s credit history, facility amount, security type, availability of audited financial accounts, risk and return considerations, and degree of liquidity of the security. Generally, the security/facility ratio is determined as the ratio between the appraised value of tangible security and the overall limit of the extended facilities.
The list of documents necessary to apply for a commercial banking facility
To apply for a commercial banking facility, the following documentation should be presented:
- Legal documentation related to the company, including the copy of the charter and state register;
- Financial accounts of the company for a least two preceding annual reporting periods;
- Projected financial statements for the entire sought finance period;
- Copies of credit agreements with other financial institutions;
- Account statement with other financial institutions for a least one preceding year;
- Copy of the ownership certificate of the collateral to secure the sought facility;
- Other documentation and supplementary information, as well as materials provided at the company’ s discretion, that may become necessary in the course of the loan application review process, including but not limited to business plans and calculations, additional materials and disclosures that might be useful in evaluating the applicant’s financial position and performance, as well as creditworthiness.
