Stock financing

 

Are you waiting for best price for a product or interested in large volumes of goods in stock? Consider this type of financing.

Stock-financing ‐ financing of goods purchase for their further storage/accumulation and sale/ financing of operational expenses against pledge of goods in a warehouse (as a part of total collateral structure). Proceeds from goods realization are directed to the credit repayment.

This type of financing can be of the most interest for companies that work with commodities or other goods which have stable demand on local and international markets.

Basic conditions of financing:

Minimum amount: UAH 4 000 000 (or equivalent in foreign currency).

Type of financing: revolving credit line or term loan.

Tenor of financing: usually up to 1 year (limits can be established for the period of up to 3 years).

Tenor of each tranche within the limit: 30-180 days (depends on a type of deal and operational cycle of the borrower).

Currency of financing: USD, EUR, UAH.

Pricing:

Interest rate:

  • for USD and EUR - LIBOR / EURIBOR + margin or current market rate;
  • for UAH - fixed or current market rate.

Organization fee: defined individually.

Pricing depends on borrower’s financial standing, deal structure, collateral quality under the deal, financing period, current situation on monetary and financial markets.

Possible collateral (or its combination):

  • pledge of fixed assets (property complexes, real estate, equipment, vehicles, agricultural machinery);
  • pledge of goods in turnover;
  • pledge of property rights under deposits placed in OTP Bank;
  • pledge of property rights under sale contracts;
  • credit repayment guarantee of other bank acceptable for OTP Bank;
  • financial surety (corporate guarantee) issued by a company acceptable for OTP Bank;
  • financial surety of the borrower`s owners.