Your business’s financial flexibility

Despite the significant role of small and medium-sized enterprises in the domestic as well as global economy, they often face difficulties in raising financing.

This reality also applies to our country, while at the same time it goes without saying that, under the conditions prevailing in today's markets, support to small and medium-sized enterprises in the form of fixed and working capital financing is often essential for them to stay competitive and transition to greener technologies with a lower energy footprint, integrate into a circular economy model, promote digital upgrade, and develop innovation.

But what are the key points of a financing application?

It is essential that you can cover the repayment of the financing, as evidenced by the financial data of your business.
Submit a well-prepared business plan, explaining how the financing will be used.
Make sure the amount of financing is consistent with the actual need to be covered and your future income flows, and consider the possibility of providing collateral.

Flexible working capital

The most flexible form of financing is an open credit line for working capital. This is an approved credit limit, which can be adjusted on the basis of the company's trade cycle. Its main feature is that – within the validity period – the paid-up capital can be re-granted.

You can use, each time, the amount you need, up to the approved credit limit. Interest and costs are charged depending on the product you've chosen. Interest, for example, can be semi-annual and charged only on the amount used, while the costs depend on the approved financing and not its use. You can repay the principal at regular intervals or when it best suits your business's trade cycle.

If your credit line is put to good use, and you are repaying the amount due to the account regularly, you'll find that this is a very useful financial tool for your business, whenever you need it.

Find out more about the open financing solutions available.

Fixed term financing

In this case, you draw out a lump sum, which comes with a specific repayment plan. The principal is repaid in monthly or quarterly instalments, while interest is paid every six months. Also, in most cases, you have the flexibility to make partial or full repayment of the financing, even online, via Internet Banking.

Find out more about the fixed-term one-off working capital.

Tip: You can link your business’s POS to the financing account.

So, as you can see, businesses can access flexible financing tools to enhance their liquidity. By using them effectively, they can, on the one hand, enhance their business flexibility at times when the pressure is on, and, on the other hand, survive and grow within a very competitive and ever-changing environment. Once again, your Business Advisor can guide you to the option that best suits your business.