Short-term Trading Loans
Trading loans can be obtained by the bank’s clients who have stable turnover and at least one-year’s trading experience. A client’s participation in financing is a minimum of 50% (10-30% is possible as an exception in case of exchange commodity). The goods must be warehoused as agreed by the bank./p>
Warehoused goods or goods being transported, as well as balances due from customers/partners backed by bank guarantees can serve as collateral for such deals. The minimum loan amount is EUR 200 thousand, maximum – EUR 2 million, term – up to 12 months (with an option to renew).
Financing of goods purchase against goods (pre-export financing)
The bank finances the purchase of export-orientated goods by providing letters of credit or guarantees; alternatively the bank makes the required down payment. In this case, a client can receive the goods from the customs warehouse in the Baltics.
Financing of goods purchase against goods and on claims against a final buyer backed by a letter of credit or bank guarantee
The bank finances the purchase of goods by providing letters of credit or guarantees; alternatively the bank makes a down payment. In this case, the goods are delivered to a final consumer provided that the consumer has his payment obligations backed by a guarantee or a letter of credit issued by an agreed bank.
Financing against warehoused goods in the Baltic countries and Russia
In this case, a trading company purchases goods at its own expense and places them in an agreed customs warehouse or a consignment warehouse. The bank issues a loan or grants a credit line to the company against the goods. Upon repayment of the loan or its part, the client may obtain the goods from the warehouse.
Financing on goods in transit against bills of lading
A trading company purchases goods at its own or a supplier’s expense. Upon receipt of the bills of lading which prove the goods are dispatched, and presenting them to the bank, the client company receives financing in the form of a loan, which has to be repaid when the goods reach their destination, or, in the case of their further allocation in an agreed customs warehouse in the Baltic countries (a consignment warehouse in Russia), immediately prior to receipt of the goods from the warehouse.
The bank finances a trading company for the time period that the company has offered a grace period to its partner (the buyer of the goods). The buyer's obligations must be backed up by a guarantee or a letter of credit issued by an agreed bank.