This is a service that provides, with high flexibility, money needed to meet companies’ obligations and to finance working capital.

The bank provides the following kinds of loans to big companies in the public and private sectors:

1. Short-term revolving loans to finance working capital.
2. At-notice long term (1- 7 years) loans to finance various work requirements.

Trade bills, resulting from a sell and buy transaction, written by the buyer to the order of the seller who deducts them at the bank under his own guarantee. In this case, the one making the deduction (trader of seller) is a customer of the bank. The bank sets a ceiling for the customer to discount the endorsed trade bills resulting from true trade transactions. The ceiling is renewed yearly. Interest and commissions are paid in advance at each discount, and are settled in installments per agreement between the customer and the bank and according to due dates of the discounted bills.

Loans granted for financing long term production enterprises. Repayment of these loans is dependent on income from the enterprises itself. The amount of finance and the repayment schedule is based on the economic feasibility study prepared by the borrower.

Eligible Enterprises

• Small and Medium-Sized Enterprises (SMEs): Enterprises employing up to 250 employees.
• Mid-Cap Companies: Companies employing more than 250 and up to 3,000 employees.

Maximum Loan Amount

The value of a single loan shall not exceed EUR 12,500,000, or its equivalent in other currencies, noting that:

• Financed projects with a total project cost of up to EUR 350,000 (or its equivalent in other currencies) do not require prior approval from the EIB.
• Financed projects with a total project cost exceeding EUR 350,000 (or its equivalent in other currencies) require prior approval from the EIB.

Repayment Period

The repayment period for any financing shall not be less than 24 months.

Purpose of Financing

• Working capital financing
• Asset purchase financing

Benefits

• Access to preferential interest rates compared to the standard lending terms offered to the business sector, with interest rates 0.25% lower.
• Flexibility in loan tenor and repayment periods to suit the nature and circumstances of the project and its cash flow requirements.