Loan for legal entities persons - a cash loan issued to a legal entity for a certain period on the terms of repayment and payment of interest on the loan.
Almost all banks provide all standard set of credit products for legal entities:
- “Overdraft” - a loan provided to the Borrower in the absence of funds in the bank account.
- Revolving credit line. The bank provides a debt limit within which the organization can use credit funds. When the next part of the loan (tranche) is repaid, the limit is restored, and the organization has the opportunity to use these funds again.
- Non-revolving line of credit. The bank sets a withdrawal limit for the client. The borrower repays the loan, but the limit is not restored, and the organization can no longer use the repaid amount.
- Simple credit t. The organization receives a fixed amount of loan funds and repays the loan according to the terms of the loan agreement.
- Bill of exchange credit. Purchase of bills of exchange and their use for settlements and payments.
- Bank guarantee. A written commitment from a bank to pay a specified amount to a counterparty. Guarantees fulfillment of the terms of the contract, return of the advance payment, guarantees in favor of the tax and customs authorities.
But today, most often, banks offer short-term (up to 1 year) or medium-term (1 to 2 years) loans.
To assess the legal capacity and creditworthiness of an organization applying for a loan, the bank requires the provision of a very impressive package of documents . The list of required documents includes: accounting and management reporting, certificates from banks, certificates from the tax office, transcripts of the main balance sheet items, agreements with major creditors and debtors, etc.
One of the general conditions for providing loans to legal entities is the need to provide collateral. Of course, this reduces the bank’s possible risks, but at the same time increases the client’s costs for assessing and insuring the collateral. Some banks evaluate collateral themselves.
However, when applying for large loans, banks will most likely require the provision of collateral in the form of liquid collateral, and sometimes a guarantee from the business owners.
Classification of loans by term:
short-term (up to one year),
medium-term (from one to two years),
long-term (more than two years).
By method of loan provision:
One-time loan- crediting the entire loan amount in full to the borrower’s current account at one time, while the possibility of renewing the limit is not provided. Another definition This is a one-time loan for a certain period and with a fixed interest rate.
Credit line- providing the borrower with a legally formalized obligation of the credit institution to issue loans to him for some time (open a line of credit) within the agreed limit.
Overdraft- loan for operating expenses. Provided in the absence or insufficiency of funds in current accounts. The total period does not exceed 6 months. The period for which an overdraft is issued usually does not exceed 30 days. Repayment occurs as funds are received into the company's account.
Classification depending on the purpose of the loan:
Business development loan- to replenish working capital. It is the simplest type of financing. No deposit required. Interest rates depend on the loan terms and loan size. The credit limit is set in relation to the current turnover of the company.
Credit for the purchase of fixed assets. Loans for the purchase of fixed assets, vehicles, special equipment, real estate. Repayment occurs in equal installments. The collateral is goods in circulation, equipment, vehicles, special equipment, real estate, including those purchased with loan funds. The requirement for the borrower is the presence of income from business activities during the last year.
Commercial mortgage. Loan for the purchase of non-residential premises, warehouse or office. Commercial real estate is collateral. It has high interest rates compared to housing.
Investment loan. Provided for a specific investment program. The term is from 3 to 10 years. The borrower must provide the bank with a business plan for the investment project and financial statements for recent years. The collateral for the loan is existing assets.
Documents required to obtain a business loan
Application (original),
Charter of commercial activity (copy),
Balance sheet with a mark of registration with the tax office (copy),
Articles of Association (copy),
License or permit for commercial activity (copy).
All original documents must be certified by relevant officials, and copies must be certified by notaries with company seals.
Borrower assessment
There are two main types of assessment:
An objective risk assessment system is based on financial reporting data. The subjective assessment system highlights the following main aspects:
Quality of management in the company;
State of the borrower's industry;
Market position of the borrower's products and services;
Reliability and quality of client financial statements.
Risks of lending to commercial enterprises
Internal risks of lending to commercial enterprises - those risks that are associated with the lending segment itself]:
lending to enterprises with which the bank has no previous experience;
accepting insufficient collateral to cover the loan;
lending in large volumes to related parties.
Small business lending
In Russia, there is a segment of lending to small and medium-sized businesses. When calculating the volume of the SME loan portfolio, not only loans to legal entities are taken into account, but also loans to individual entrepreneurs. The interest of banks in this segment is explained by severalreasons :
The profitability of lending to large clients began to fall; large businesses have access to cheaper foreign capital;
A reduction in interest rates, in itself, creates additional demand from small businesses;
The segment of lending to large clients is completely distributed among banks, its growth opportunities are limited;
The possibility of lending to large companies, as a rule, is available exclusively to large banks, the volume of credit resources of which is comparable to the needs of corporations.
It is necessary to diversify the loan portfolio and risks by industry, type of borrower and loan period.
Lending principles include:
Repayment and urgency of lending;
Differentiation of lending;
Loan security;
Repayment of bank loans.
Targeted nature of the loan;
Let's take a closer look at each of the principles.
Repayment is the feature that distinguishes credit as an economic category from other economic categories of commodity-money relations. Without repayment, a loan cannot exist, therefore repayment is an integral part of the loan, its attribute.
The repayment and urgency of lending is due to the fact that banks mobilize temporarily free funds of enterprises, institutions and the population for lending. These funds do not belong to banks, and, ultimately, they, having come to the bank from various market segments, go to them (consumer, commercial lending, etc.). The main feature of such funds is that they are subject to return to the owners who invested them in the bank on the terms of time deposits. Therefore, the golden banking rule states that the size and timing of the bank's financial requirements must correspond to the size and timing of its obligations. Violation of this fundamental principle leads to bank bankruptcy.
Urgency lending is a necessary form of achieving loan repayment. The principle of urgency means that the loan must not just be repaid, but repaid within a strictly defined period, i.e. the time factor finds concrete expression in it. The loan term is the maximum time the loaned funds will remain in the borrower’s household and is the measure beyond which quantitative changes over time turn into qualitative ones.
Differentiation lending. This principle determines a differentiated approach on the part of a credit institution to various categories of potential borrowers.
Security loan covers one of the main credit risks - the risk of non-repayment of the loan.
To secure a loan, banks can accept from borrowers any property of the borrower as collateral, including buildings, structures, inventories, documents of title, bills and other debt obligations, securities (stocks, bonds, treasury bills, etc.), foreign currency.
Only property free from collateral that is owned by the borrower or belongs to him with the right of full economic management is accepted as collateral. Goods accepted by the bank as collateral must be insured at the expense of the borrower.
Repayment of bank loans means the payment by loan recipients of a certain fee for the temporary use of funds for their needs. The implementation of this principle in practice is carried out through the mechanism of bank interest. The bank interest rate is a kind of “price” of the loan.
For the bank, the repayment of the loan ensures that it covers its costs associated with the payment of interest on other people’s funds attracted into deposits, the costs of maintaining its apparatus, and also ensures the receipt of profit to increase the lending resource funds (reserve, statutory) and use them for its own and other needs.
By purpose, bank loans can be divided into the following groups: industrial, agricultural, trade, investment. Industrial loans are provided to enterprises and organizations for the development of production, to cover the costs of purchasing materials, etc. Agricultural loans are provided to farmers, peasant farms in order to facilitate their activities in cultivating the land, harvesting crops, etc.
Depending on the area of use, bank loans can be of two types: loans to finance fixed or working capital. In turn, loans for working capital are divided into loans in the sphere of production and in the sphere of circulation. At the present stage of development of the Russian economy, the most profitable and, as a result, the most common are loans aimed at sphere of circulation.
According to the terms of use, bank loans are on-call(on demand) and urgent. Call loans are repayable within a fixed period upon receipt of formal notification from the lender. Currently, such loans are practically not used in Russia, as they require stable conditions in the loan capital market. Term loans are usually divided into short-term, medium-term and long-term. In modern banking, short-term loans are predominantly used.
According to the method of issuance, bank loans can be divided into loans of a compensatory and payment nature. Compensatory a loan involves sending loan funds to the borrower’s current account in order to reimburse previously incurred expenses. Essence payment credit consists in the fact that the borrower, as necessary, provides the bank with the settlement and payment documents received by him and the loan funds go directly to pay for these documents.
Based on the types of interest rates, bank loans can be divided into loans with a fixed or floating interest rate. Loans from fixed interest rate rate implies the establishment of a certain interest rate for the entire lending period without the right to revise it. In Russian bank lending practice, fixed interest rates are predominantly used. Lending with floating interest rate rate involves the use of an interest rate, the amount of which is periodically revised.
Thus, in the credit system there are 3 basic elements, which determine the face of a credit transaction and its effectiveness. These elements include subjects, objects and loan collateral.
When considering the amount of loan fees, banks should consider the following factors:
Refinancing rate of the Central Bank of the Russian Federation;
Average interest rate (the rate of attraction of interbank loans or the rate paid by the bank on deposits of various types);
Structure of credit resources (the higher the share of borrowed funds, the more expensive the loan should be);
Demand for a loan from potential borrowers (the lower the demand, the cheaper the loan);
The period for which the loan is requested, the type of loan, or rather the degree of its risk for the bank, depending on the collateral;
Stability of monetary circulation in the country (the higher the inflation rate, the more expensive the loan fee should be, since the bank has an increased risk of losing its resources due to the depreciation of money).
When lending to a legal entity - a small enterprise guarantees are required the founder (founders) of the borrower, who owns a controlling stake in the borrower, and/or individuals who have the ability to have a significant influence on the activities of the borrower (based on the audit of the security department). A guarantee is issued for the total amount of loan obligations.
The concept " creditworthiness"is an ambiguous economic category. In its broadest interpretation, creditworthiness assessment takes into account:
1) legal capacity and capacity of a legal entity, allowing the borrower to carry out activities in the market;
2) purpose, conditions and economic efficiency of lending;
3) financial condition of the borrower (solvency, financial stability, efficiency of use of fixed and working capital);
4) availability and quality of security for fulfillment of loan obligations, availability of own property;
5) the character and reputation of the borrower;
6) organizational and commercial prerequisites (active production and financial activity, quality of management, commercial environment, level of competition, business and commercial activity, organization of accounting and planning, procedure for storing and selling products, etc.).
The borrower's creditworthiness, unlike his solvency, does not record non-payments for the past period or at any date, but predicts the ability to repay the debt in the near future.
The main thing is what determines creditworthiness-- this is the current financial position of the enterprise, as well as possible prospects for its change. For example, if a company's profitability declines, it becomes less creditworthy.
In this case, the object of lending, for example, may be a temporary gap in payment turnover, when the company’s own funds and incoming revenue (income) are not enough to make current or upcoming payments. This may be needs related to the need to pay wages to the company’s personnel, various taxes to the federal or local budgets, property insurance premiums, etc.
The objects of lending can also be costs associated with the borrower’s business activities. In Russian practice, loans are issued under different inventory items. In industry, for example, banks provide loans for raw materials, basic and auxiliary materials, fuel, packaging,
Real estate pledge (mortgage)) is a pledge of enterprises, structures, buildings, structures or other objects directly related to land, together with the corresponding land plots or the right to use them.
Mortgage-- this is a pledge with the subject of pledge remaining with the pledgee. It is most preferable for the bank because it can better control its condition. There are two types of pledge with the subject of pledge remaining with the pledgee: pledge of rights and firm pledge. The latter involves storing it in the warehouse of a bank, some specialized organization or borrower, but under lock and key and under guard. Valuables accepted as collateral must be easily marketable, insurable and long-term stored. The most convenient objects of hard collateral for a bank are commodity and commodity-transport documents and securities. Documents evidencing the transfer to the bank of rights to own and use property, rights to intellectual property (copyrights, trademarks, know-how, patents, etc.) as security for a loan can be used as a mortgage.
Insurance of the collateral is carried out by the party who retains the collateral. Insurance is provided for the full value of the collateral at the expense of the pledgor.
The right of pledge terminates with the termination of the obligation secured by the pledge, in the event of the destruction of the pledged property, the acquisition by the pledgee of ownership of the pledged property, or the expiration of the right constituting the subject of the loan.
The subject of the guaranteed obligation can be financially stable enterprises or special institutions that have funds: banks, less often - the borrowing enterprises themselves.
In Russia they are used only in accordance with Civil Code bank guarantees, always issued only for a certain period. Their effect begins from the moment obligations arise under the loan agreement. The issuance of guarantees is of a paid nature.
Surety There is also a form of ensuring loan repayment. It is used in the bank’s relationships with legal entities and individuals and is always formalized in a written agreement. If the written form of the guarantee is not observed, the contract is invalid.
As credit collateral, the borrower can use one of the listed forms or several forms at the same time, which is stipulated in the loan agreement.
The proposed measures to improve the system of lending to clients - legal entities of Rosbank of Russia, contains mainly organizational and information methods, namely:
1), Rosbank must adhere to priorities in lending to a certain group of legal entities operating in crisis-resistant sectors of the economy and approach the assessment of their creditworthiness not only on the basis of financial statements, but also by analyzing other information about the borrower, which will significantly increase the size of the loan portfolio jar;
2) it is necessary to come up with a proposal to amend the Federal Law “On Credit Histories” on the issues of establishing administrative liability of officials of credit institutions for incomplete submission of information about the credit histories of borrowers who have given consent to this,
4) modernize the information support scheme for the system for assessing the creditworthiness of borrowers in Rosbank, introducing into it elements of interaction with third-party data banks containing information about borrowers.
Lending to legal entities during a crisis is a problem on a national scale. Since commercial banks are in no hurry to work with businesses due to increased risks, now in order to obtain a loan you will have to make an effort and use the help of a specialist. A legal entity can receive a loan of up to 3 million rubles. without collateral or guarantors is possible only if you have impeccable financial statements and credit history.
A loan for an LLC or individual entrepreneur in the amount of more than 3,000,000 rubles can be taken out by securing it with a firm pledge of real estate, transport, equipment or marketable goods. For small and medium-sized businesses, the processing time is very important; legal entities usually need a loan yesterday.
In order to get money urgently, you will need help. The fact is that banks lend mainly to those companies whose accounts they maintain and have information about the creditworthiness of the legal entity. In the case of a company “off the street,” the bank will need a huge list of documents, including contracts with counterparties, long hours of work by analysts, and business visits. This entire procedure often takes more than one to two months. With our help, you can get an urgent loan for an LLC in 7-10 days.
For example, for a company in Moscow with positive reporting and liquid assets, an option is possible under the following conditions:
- 17% per annum
- 36 months
- up to 3 million rubles
Our advantages
- We provide loans for LLCs without collateral - up to 3 million rubles. for a period of no more than 5 years;
- Loan for legal entities secured by up to 400 million rubles. and for a period of up to 20 years;
- Pre-bank scoring LLC allows you to identify all the problems of a legal entity;
- You can apply online;
- Loan to founders and general directors for business development as individuals. persons;
- For companies with minimal reporting, loans are also provided, incl. without guarantors;
- We provide assistance in preparing LLC reports for obtaining borrowed funds;
- We consider property owned by third parties as collateral;
- An unsecured loan is issued regardless of the place of registration;
- We have a minimal probability of refusal to issue loans;
If the bank that provides you with services in terms of settlement and cash services has refused to receive a loan for a legal entity. person, you need our help. The more blind requests you make, the less likely you are to receive the desired amount. All requests from both individuals and legal entities are recorded in the credit history. More than three loan refusals are automatically considered by banks as a reason for a negative decision on the application. If you want to get a loan for an LLC urgently, you need to leave an online application on our website right now!
Lending to legal entities persons in commercial banks contributes to the development and maintenance of business. Any successful enterprise requires serious financial investments, which Promsvyazbank provides on terms favorable to clients. Representatives of small and large businesses in Moscow and other cities of the Russian Federation can choose the most acceptable forms of lending for themselves, depending on the characteristics of the company and the goals pursued.
We offer each borrower beneficial legal lending. persons Often, increasing capital through a bank loan is the only opportunity to develop a business, make it viable and profitable. Commercial lending to legal entities from Promsvyazbank allows you to use funds at your own discretion - for the development of your own enterprise.
Our offers
We offer:
- Short-term bank lending to legal entities in two forms - a line of credit and a commercial loan. In the first case, funds are provided in separate tranches, in the second, the client receives money in a lump sum.
- Long-term lending to legal entities in Moscow and the Russian Federation - to pay off costs associated with the implementation of investment projects. Financing of large projects can be carried out jointly using other products. The main advantages of this type of loan are the terms (up to 10 years) and the ability to determine the grace period for interest payments.
- Overdraft is a unique line of credit products that can satisfy the requirements of any corporate clients for short-term project financing. This is crediting the client's current account within a certain limit - payment of settlement documents in the event of insufficient or absence of funds in the client account. Used to replenish the company's working capital and manage liquidity.
Advantages of our bank
The commercial bank Promsvyazbank offers legal entities the following advantages in lending:
- favorable terms of loans provided;
- prompt response to customer needs, consideration of loan applications as quickly as possible;
- high level of service during registration and support of credit programs;
- individual approach.
Amounts, terms, interest rates and forms of loan products are all determined based on the terms of the transaction being financed and the characteristics of the clients’ cash flows. To obtain information on the main points of lending to legal entities in Moscow and the regions, call the numbers listed on the website or visit any branch of Promsvyazbank.
The economic development of the country largely depends on how successfully business develops, because it brings good injections into the budget through deductions and taxes. The development of entrepreneurship itself also requires money, but sometimes there is not enough working capital, so you have to find other sources of financing. One of the main methods is lending to legal entities by banks, where the collateral can be a pledge of property, guarantors or a bank guarantee.
What is a loan to legal entities?
A business loan is a specific lending program that involves issuing funds at a certain interest rate, which must be repaid after a specified period. In contrast to the peculiarities of lending to individuals, loans issued to entrepreneurs have a number of nuances. Obtaining them is not always easy, since it is necessary to convince the financial institution of the ability to return the borrowed money.
Credit system
The credit system of Russia and other countries is the totality of all credit institutions and the relationships between them. If we talk about the bank lending system, then there are several components in it:
- principles;
- objects;
- types of credit;
- loan provision and repayment mechanisms;
- control in the lending process.
Lending methods
One of the main elements of the system is borrowing methods. Their essence lies in the method of issuing and repaying loans in accordance with the principles of lending to legal entities. Currently, two main methods are used in banking practice:
- Urgent loans. Loans are issued for specific periods to resolve specific issues. In this case, a legal entity takes out a loan once and then pays off the principal and accrued interest according to the schedule.
- Credit line. A loan is issued within the framework of established agreements between the lender and the borrower, and the funds are used as needed.
Business lending - classification of loans
In modern theory and practice, there are several approaches, depending on which loans can be classified as objects of lending. They are mainly based on what features are included in the systematization. Some characteristics may be of the same type, but in the complex of forms they differ from each other. More often, the loan term, provision of guarantees, method and limits of issuance, purpose and a number of other characteristics are taken as a basis.
By maturity
Depending on the principle of urgency of lending to legal entities, short-term, medium-term and long-term loans are distinguished. It’s worth mentioning right away that in practice it is impossible to draw exact time boundaries between these types, since each country uses its own individual approach. Thus, in Germany the indicator of medium-term loans is 6 years, while in Russia this indicator fluctuates around one year.
Short-term loans are intended to form the company’s working capital, help increase the solvency of the enterprise and strengthen its financial position. Medium- and long-term lending to legal entities is aimed at long-term needs. They are taken to modernize production or expand it. In addition, there is a so-called on-call loan on the bank loan market. It must be repaid at the first request of the creditor. Such a loan is issued for ultra-short-term needs.
By delivery method
There are direct and indirect loans. The essence of the first is that the money is sent to the account of a legal entity. Funds can be used at the discretion of the enterprise, used to pay off existing debt or purchase inventory. An indirect loan is not issued to the borrower, but goes directly to pay for goods and services to the contractor. To do this, the borrower provides the lender with financial documents for payment.
By purpose
Depending on what the loans are taken for, I allocate non-targeted and targeted loans. In the first case, loans are issued for any needs - purchase of equipment, replenishment of working capital, etc., and there is no need to submit a report on use. In the second case, the borrower must report to the bank for the money used. The advantage of targeted loans is that interest rates on such offers are always lower and the terms are extended, which is sometimes very profitable.
Types of loans for legal entities
Thanks to the law on lending to legal entities, this banking sector has undergone rapid development, which is only gaining momentum every year. Now many Moscow banking institutions offer loans for small, medium and large businesses (Sberbank, VTB 24, MKB, etc.). Customer service is provided in several areas:
- universal credits;
- lending for investment projects;
- loans for current activities;
- commercial mortgage;
- factoring;
- mortgage credit lending;
- credit line;
- leasing
Opening a credit line
Opening a line of credit with a bank helps resolve issues as they arise, since there is no need to spend all the money at once. If necessary, the client can use a certain amount without additional approvals from the creditor, however, the bank may refuse the legal entity if a deterioration in the latter’s financial situation is noted.
Credit lines are usually opened for a period of up to one year and can be revolving or not. With non-renewable programs, cooperation between the bank and the borrower ends when the latter repays the debt in full. The advantage of a revolving line is that the money coming into the account as part of debt repayment, excluding interest payments, can be reused.
Universal non-targeted loans
To resolve one-time issues related to the needs of an enterprise or company, they resort to applying for a loan on a general basis. As a rule, such lending programs for legal entities are offered to new bank clients who do not yet have a credit history and established long-term relationships. If a large amount is needed, loans can be issued against collateral or guarantees from individuals or legal entities. Loan repayment can occur according to a specific schedule or in a one-time payment - this condition is stated in the loan agreement.
Loan for legal entities for current activities
When opening a bank account, legal entities as lending entities may be offered an overdraft. Its meaning is that a certain amount of money is transferred to the account, regardless of the funds available there. You can use it when the need arises. Interest is accrued only on funds spent, and the money itself is often used to cover bank gaps. The overdraft limit is set depending on the amount of working capital.
Lending for investment projects
If you plan to implement a new business or expand an existing one by opening a new production, you can also turn to financial institutions for investments, but in some cases you will need to fulfill some financial requirements of banks - to have part of your own funds or the ability to secure an obligation. Loans for startups are provided if there is a competent business plan, in which it will be possible to see how profit will be made from the project and whether the borrower will be able to pay off the existing debt.
Leasing and factoring
Leasing is often used to purchase expensive goods, equipment and real estate. This banking product allows legal entities to make payments without having their own funds. At its core, a leasing program is a rental option with the possibility of subsequent purchase of property. Unlike a loan, a legal entity can only use the leased property, but cannot dispose of it or own it until it pays all due payments.
One of the forms of commodity loans is factoring. In recent years, interest in such loan transactions has increased significantly. Its essence lies in the fact that the rights to receivables are transferred to a third party. This means that in addition to the seller and the buyer, a third party appears in the relationship, which buys out the existing debt. Lending to legal entities in this way is often used by companies in the trading sector that constantly need working capital to conduct business.
Business lending terms
It will be easier for representatives of large businesses to obtain borrowed funds than for legal entities belonging to medium-sized enterprises and individual entrepreneurs. This is due to the fact that banks are willing to provide credit services to legal entities if they are confident in the return of invested funds and receiving income from this investment. As an option, you can provide the lender with security - liquid property or a surety agreement.
Loan rates
Average loan rates for businesses differ from personal lending programs to a lesser extent. However, they directly depend on the selected borrowing program. Non-targeted loans will cost the most, but regular customers can count on special offers. Rates will be reduced upon presentation of collateral or bank deposit.
Requirements for the borrower
Each credit institution has its own evaluation criteria for borrowers, but the first thing that attention will be paid to is the subject’s credit history, especially if this is the first time they have contacted this bank. For those who are just dreaming of starting their own business, before taking out a business loan, you will have to work on a business plan. It is possible to take advantage of subsidies from the state, but this option will not always be possible due to the massive reduction in government support.
Procedure for lending to legal entities
Lending to legal entities to obtain money for a new project, business expansion or other needs related to current activities consists of several operations. Their essence lies in choosing a lender, if there is no permanent cooperation with any banking organization, submitting a loan application, where you must write the purpose of the loan, and collecting a certain package of documents. Everything else depends on the lender.
Applying for a loan
Once a lender has been selected, the business needs to submit a loan application. This can be done either during a personal visit to the branch or using the bank’s website online. A preliminary decision will be made as soon as possible, but this does not mean that the loan will necessarily be provided. To make a final resolution, you will need to prepare a certain package of documents, after which the bank will analyze the creditworthiness of the applicant.
Assessment of the borrower's creditworthiness
The process of making a final decision on a loan for legal entities and individual entrepreneurs can take up to several days. For work, employees use various assessment methods:
- calculation of financial ratios;
- cash flow analysis;
- level of business and credit risk;
- level of solvency.
When assessing the creditworthiness of a legal entity based on a system of financial ratios, five groups of ratios are used in world practice:
- liquidity;
- efficiency (turnover);
- financial leverage;
- profitability;
- debt service.
Based on the ratio of the total cash flow and the size of debt obligations (cash flow ratio), the client’s creditworthiness class is determined:
- I - 0.75;
- II - 0.30;
- III - 0.25;
- IV - 0.2;
- V - 0.2;
- VI - 0.15.
Registration of a loan agreement
If a loan to a legal entity has been approved, the bank begins to develop a loan agreement. To do this, the type of loan, the currency and amount of the loan, the timing and methods of debt repayment, the availability of loan security and other aspects are determined. The agreement is signed at the bank branch by both parties and sealed with signatures and seals.
Opening a loan account
Lending to legal entities upon signing an agreement involves opening a loan account. The initiator of this procedure is the banking organization. Using an account, you can control financial flows, and expenses and income are recorded separately in it. If a client has been issued several loans from one bank, a separate account is opened for each of them. The opening time is considered to be the time the loan is issued.
Monitoring
All loans are subject to inspection at a certain frequency, which commercial banks are required to carry out. This helps to identify problem loans and the reasons for their occurrence, risk limits and volumes of lending. Based on the results of the audit, an analysis is carried out to determine the possibility of writing off “bad” debts. Thanks to loan accounts, there is a good opportunity to monitor compliance with debt repayment, as well as to create a credit dossier for specific borrowers.
Issuance of loans to legal entities
To summarize briefly, we can understand that lending to legal entities is a very complex stage, and its implementation requires a lot of effort and time before an affirmative answer is received and a loan agreement is signed. The requested amount and the choice of banking institution play a big role, because each of them has its own criteria for determining the client’s creditworthiness.
Package of necessary documents
To speed up the consideration of your application and increase the chance of receiving a bank loan, you need to prepare documents according to the list approved for a specific lending program. Depending on the type of loan and banking institution, the list may vary. All papers can be divided into three main groups.
