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Short-term Trading Loans
Rietumu Bank offers several types of short-term loans to increase working capital of an enterprise.
The Bank grants loans to all the Bank’s customers, who have stable turnover and at least one-year trading experience. A customer’s participation in financing – at least 50% (10-30% is possible as an exception in case of exchange commodity). The good has to be warehoused as agreed by the Bank.
Warehoused goods or goods being transported, as well as balances due from customers/partners backed by bank guarantees or letters of credits, can serve as collateral for such deals. Minimum loan amount is EUR 200 thousand, maximum – EUR 2 million, term – up to 12 months (with an option to renew).
Available Loan Types
- Financing of goods purchase against goods (pre-export financing)
The Bank finances purchase of export-oriented goods by providing letters of credits or guarantees; alternatively, the Bank makes a required downpayment. In this case, a customer can receive the goods from customs warehouse in the Baltics or from a consignment warehouse in Moscow or Saint Petersburg upon the loan repayment.
- 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 purchase of goods by providing letters of credits or guarantees; alternatively, the Bank makes a downpayment. In this case, the goods are delivered to a final consumer given 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 counties 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 the loan repayment, the customer can get 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 bills of lading, which prove the goods are dispatched, and presenting them to the Bank, the customer company receives financing in the form of a loan, which has to be repaid, when the goods reach its destination, or, in case of its 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.
- Export factoring
The Bank finances a trading company for a time period the company has offered a grace period to its partner (the buyer of goods). The buyer’s obligations have to be backed by a guarantee or a letter of credit issued by an agreed bank.