Features of short-term lending commercial lending terms and definitions

The selection of this type of lending is closely related, and is derived from this principle lending. This principle means that the loan must be repaid by the borrower to the Bank in the loan agreement. The loan must be repaid in advance due to time. In case of violation of the principle of domain Bank makes to the borrower’s financial requirements. Repayment period is the period of credit usage. It is calculated from the moment of reception of the credit (crediting to the account of the borrower or the payment of payment documents from the account of the borrower) to its final repayment.

Legislation the content of the concept of “short-term bank loans” is not defined and applied the concept of “short-term loan: Bank loans, including the financing of foreign trade operations, payments for agreements and other types of loans and advances (including mortgages), which provide an initial maturity of less than one year or payable on demand. Also points out that the short-term loan is a loan for a period of up to one year.

A short-term loan is a cash loan, that it provide banking institutions, economic organizations and individual citizens for up to one year to meet their production needs additional working capital requirements. The basic principles of short-term loan: purpose, and guaranteed security (full payment). Resources for short-term credit is temporarily free funds of enterprises, organizations, budget, credit and other institutions that are on the accounts in the banks.

The subjects of short-term lending may serve physical and legal entities.
Short-term crediting of legal persons it is advisable to consider in terms of crediting for replenishment. Short-term bank loans “involved, mostly to finance the current assets of the enterprise, in particular, to cover a temporary shortfall of payment means, purchasing, inventory, etc.

In the process of organization of short-term bank lending credit managers are guided by the organizational and regulatory materials, that can be both external and internal.

• Possibility of mortgage lending of foreign nationals
• Mortgage lending to foreign citizens in Bulgaria
• lending pensioners
• Mortgage: mortgage lending new practice
• Loan for reconstruction of private homes
• How to get a loan for house repair
• Interest-free loan in cash

For organization of short-term bank lending is important to the formation of organs, that effectively and consistently implement the stages of the loan process in the Bank. What role is played by the authorities as strategic management, not directly involved in the loan process, but to define the strategy of the Bank loan market and credit policies, and Government departments of the Bank, that they implement and the competence of which includes the provision of short-term bank loans, their timely servicing and repayment.