Factoring is alternative to crediting. However, it is important to get to know more about factoring and credits.
Credits for developing small and medium-sized businesses
For developing a business, for supplementing working capital or finance investment projects the Bank can grant short-term and long-term credits.
1. Credits are granted in LTL, USD or Euro
2. Credits can be repaid at the customer's requested periods and amounts agreed with the Bank
3. Credit deadline can be extended on the agreement of the parties
4. For short-term credits fixed interest is calculated during the whole credit period
5. Interest rates for long-term credits are set depending on LIBOR/EURIBOR/VILIBOR basic interest rates to which the Bank's interest margin is added
6. Profit is payable monthly
7. Credit repayment guarantees – real estate and movable property, also guarantees provided by private companies Investment and Business Guarantees and Agricultural Credits Guarantee Fund
8. Credit amount cannot exceed 70% of the market value of the mortgaged real estate or 50% of the market value of the movable property
 Ways for getting a loan
Find out how to get a loan because this is not easy. All you need to do is to provide the following documents together with the filled in application. So, they are:
1. Company establishment agreement, registration documents, Articles of Incorporation of the company
2. Don't forget about a license of activities defined in the Articles of Incorporation but only if the activities are licensed according to the Law
3. Work regulations of the company board, if there is one
4. A card with signature samples
5. A certificate from the state social security company
6. A short Business Plan about the use of the short-term loan
7. An investment project or a business plan
8. Documents of the pledged property
9. Financial reports – Balance Sheets, PLS, cash flow reports, income declarations, confirmed by the Tax inspection, for the last 2 years
10. Documents confirming the use of the loan – agreements, contracts, invoices, construction (reconstruction) estimates, etc.
11. A list of shareholders having taken part in the meeting
12. A statement from the minutes of the company management meeting during which the head was appointed
13. Passport of the person authorized to sign an agreement with the Bank
But the Bank can make a decision to grant a credit. In this case you have to do the following:
1. The first is to sign a Credit Agreement.
2. Then you will have to provide a certificate from the Land and other Real Estate Cadastre and Registry State Company to pledge real estate.
3. Supplying your spouse's agreement to pledge real estate certified by the Notary Public will be the next you will do.
4. Supply ownership documents of the pledged property.
5. You need to assure at the Bank's profit the pledged property and provide the Insurance policy.
6. And the last is registering mortgage or movable property pledge sheet.
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