Medium and long-term professional bank credits 2022
Banks can grant businesses with medium or long-term banking credits
whose name is bank loans or professional credit.
When we talk about medium professional or long-term credit, it is
defined as the duration of the bank loan (the time that separates it from the
end of credit repayment).
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| professional bank credits |
The word "term" refers to the end of bank credit.
The duration of a professional credit is important: the conditions of
long-term bank credit and are not the same as those of a short-term loan.
In real estate, the most contracted professional credits are long-term
credits, that is to say, that refunds are spread over more than 7 years.
These are often bank credits spread over 10 to 15 years.
For short-term bank credit, it is a credit whose duration does not
exceed 2 years. (more used in consumption(..
Who can benefit from a professional bank credit?
Corporations (TPEs and SMEs), companies in creation, buyers, existing
businesses are the beneficiaries of bank credit.
What economic sectors, which sizes of companies, which statutes?
Professional bank credit concerns all economic sectors, any business
size, all legal status (SA, SARL, EURL, craftsmen, ICS, etc).
A professional credit for what to do?
A professional credit makes it possible to finance the investments: real estate, business, professional furniture, production equipment.
transport
equipment, arrangements, work, computer science advertising/communication,
etc., and cash requirements generated by these investments.
Terms of obtaining a professional credit
Bank credit usually covers 70% maximum of the HT amount of the
investment to be financed and necessary in working capital requirement.
De facto the personal contribution is 30% of the need to finance.
Duration of professional credit
The medium-term corporate bank loan is a professional credit whose
duration is between 2 and 7 years.
A long-term loan is a bank credit whose duration is between 7 and 15
years (especially for corporate real estate).
Depending on the nature of the investment and the reimbursement capacity
of the company, a deferred repayment is possible.
PROFESSIONAL CREDIT RATES
Each bank has its rate for professional credit that it offers companies
(SMEs and TPEs).
Warning: do not forget the file fees and insurance, which add to the
bank rate, and which can sometimes be around 1.5%.
Help and Shoulder The Contractor, or SME / TPE to present its records to
banking organizations, with which a partnership has been signed, for the
presentation to other banks see conditions/tariffs.
Search for funding for your project may be a major challenge, whether to
increase capital or expand your current project activity or start a new project.
8 ways to finance small projects
- 1. Support boxes and loans for small projects
To support and remove obstacles to individuals to establish small and
emerging projects.
somebodies or funds provide funding programs for emerging and small
projects at the lowest cost and soft procedures. It is such funds: Saudi
Industrial Development Fund.
- 2. Financing of friends or family
Family and friends are more people confident about what works and what
you want to achieve.
The financing of them may be moral and
physical support for your project instead of other parties as banks that must
be studying the project in all respects before approving funding.
Friends or relatives may also be less
expensive and risky as funding can be in the form of a certain investment in
the project.
- 3. The bank loan
You can take advantage of Saudi SME banks, but these loans need several
documents such as the company's plan of action, the value of expected earnings
annually.
and other documents that help assess
the status of the credit company and its ability to meet its financial
obligations.
- 4. Credit Card
A credit card enables you to finance the company's short-term
expenditure, but if it delays the payment of the due amount, will affect the
status of the credit company, so some are considered that this method is highly
risky.
For this, the Credit Card has been used to support the company's cash
flow, you must commit to paying funds owed regularly.
- 5. Mass finance
It is one of the modern financing methods for small and emerging
projects (Crowd Funding).
The project owner offers their idea detailed some specialized websites
for a certain period and then contributes to the idea by investing or financing.
- 6. Specialization
Is one of the funding methods by selling the dues of the
company/customer invoices to a third person (called a factor) at a reduced
price to get cash in advance.
The perceptions of the banking loan are focusing on the outstanding
value and not to reputate the company or credit condition.
It is no longer a loan but purchased for assets, and includes three
parties while the bank loan includes only two.
The defects of this method are that the permanent service charges are
estimated by a certain amount or invoice value and are usually more expensive
than bank loans.
- 7. Collect future profits
This method is to display your products and services on the market or
websites, and then collect a part of the sales value as the Arabs.
providing you with cash flow through the collection of part of your
future profits. This is the best way to get a financial flow away from the
benefits or fees.
- 8. Bold capital
Or called capital capital is a capital of investors or capital funds
specializing in investment in emerging companies versus ownership of a certain
share of the company.