One of the characteristics of the business is its constant development and growth. After all, side-stepping in one place and easy hold positions sooner or later will undermine all the efforts. Suppose you opened a shop. Tomorrow, in the form of baffler visitors, you’ll have to hire for the job of new people buy the equipment for automation and after and quite open yet another store, which would entail new costs. Thus, without regular investment, the existence of the business. But where to take money for the expansion of the range of products, purchase more, if all capital and without that is in circulation? In such cases there is no credit for replenishment of circulating assets.
It is provided only to legal entities for solving tasks connected with a business or banal funds that are in circulation. The reason for applying to receive the revolving loan can be the following:
Urgently need money for prepayment of goods or for its purchase;
The desired expansion of the range of products;
Opening of a new unit or outlet;
Expansion of production or product with the buyers delay and payment;
The opening of a branch in another region.
Despite the fact that replenishment may need business in any niche, often it is still seeking the owners of enterprises from the expressed seasonal production and sales. Why most organizations that provide such a loan, ready to meet clients and make a schedule of payments according to income of the period. So can be offered the following options of repayment:
Monthly by equal installments;
Individual schedule taking into account seasonality.
In addition, most agencies are considering postponing principle payments for a period of six months to a year.
Credit for working capital financing can be presented in the form of a conventional single loan and in the form of renewable and non-renewable credit line. Some businesses provide and overdraft. Usually, the borrower remains the right to early repayment.
The loan amount on the infusion of additional funds in turnover vary quite widely from one hundred thousand to ten million, you can also choose another currency.
What is needed to get credit for replenishment of circulating assets? First, you need to be a registered legal entity that operates not less than a year. Secondly, the balance should confirm the capacity of the business. It should be remembered that the maximum loan term for a similar program does not exceed three years. And you can only count on the amount, twice more than the income of the company or individual entrepreneur for the past 12 months.
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For creating and working capital involve short-term loan capital. The amount of cash, These programs determine the specific loan conditions, working capital for manufacturing companies, Credit for working capital to fund temporary needs of working capital, Resources are short-term credit available cash businesses, viewed in the context of credit for working capital, Primarily to finance working capital assets.