To maintain the organization's competitiveness, long-term investments are needed. You can attract additional resources by means of an overdraft, a special loan or a credit line. About the essence and terms of this service you will learn from this article.

Definition

A credit line is a right granted to an organization to use borrowed funds of the bank within a specified period of time and in an established amount. Specific conditions are prescribed in the contract. This service allows you to liquidate financial gaps without withdrawing capital from turnover. The client can choose independently, when and what volume of means to use it.

Kinds

Non-renewable credit line is provided by tranches within a certain period and limit of funds. The borrower himself chooses when to use the money. Repayment of part of the debt does not increase the limit.

A revolving credit line is a loan that is provided by parts within the period specified in the contract. Timely repaid debt increases the limit of available funds. The customer pays only for the actual amount of used capital.

In the first case, the borrower returns the loan body and interest to the bank, after which the line closes. And in the second - after the repayment of the first tranche the limit of available funds increases, and you can again use the borrowed money. There is only one restriction - the debt must be repaid within a certain period. Most often this is 3 months.

A non-revolving credit line with a withdrawal limit is applied if the customer needs borrowed funds for a certain period. But the exact date of the beginning of expenses is not known.

The framework credit line is opened for payment of deliveries which are carried out with the certain periodicity, within the established interval of time.

There is a separate program under which a new tranche can only be obtained after the full payment of the previous one within the prescribed period of time several times. It is called a revolutionary credit line.

There are several more specific types:

• On-call (the return of some of the funds allows you to get a future loan for this amount);
• Contractual (loan is issued automatically after the repayment of the previous one);
• Multicurrency (short-term financing of foreign economic operations);
• On demand (loan is issued upon request) and others.

Examples

• The non-revolving credit line in the bank for the amount of 1 million rubles was opened by the borrower company. Three tranches were taken: 500, 200 and 300 thousand rubles. After receiving the last part, a limit was reached. Now the client must repay the loan in full. It is no longer possible to use funds even with partial payment of a debt.

• The credit limit of the organization is 1 million rubles. The borrower took a tranche - 700 thousand rubles. After this operation, the limit was reduced to 300 thousand rubles. The following month, a part of the debt was repaid - 500 thousand rubles. Now the amount of available funds is: 500 + 300 = 800 thousand rubles. That is, the client can withdraw funds several times and repay them in a timely manner. So that the amount does not exceed the one for which the credit line was provided. This is a revolving loan.

Sometimes a bank charges a commission for an unused portion of the funds. In the above example, this figure is 300 thousand rubles. Also, with a renewable scheme, the repayment period of each tranche is set. The contract can be executed for one year. But each separate part of the used means should be repaid within 2-3 months.

• The terms of the revolver program set a limit of 1 million rubles. for 1 year. The client can take funds within this amount unlimited number of times within 12 months.

The difference between the credit line and the target loan

• Convenience and benefit to the enterprise. The date of the need for money is not known in advance. A credit line with an issuance limit allows you to get a loan on time and pay off at the onset of the opportunity.
• It takes less time to attract funding.
• Although this service in banks is available to almost all customers, but the limits and conditions of service depend on the scope of the organization.
  In some cases, you will have to provide a deposit. It can be raw materials, which the enterprise acquires for borrowed funds, or other assets. If there is a collateral, the rate is reduced, and the process of processing the transaction is accelerated.
• You can apply for a loan in Sberbank. Terms of its use will be less beneficial to the borrower. By credit lines, a lower interest rate is usually set .

Features of the provision of services by Russian banks

The loan can be obtained in rubles, dollars or euros. The amount depends on the solvency of the legal entity, its credit history and account turnover. Terms vary from 3 months to 5 years. If a "long" credit line with a debt limit of more than 1,000,000 rubles is opened, the bank can demand adequate security: real estate, land, transport, equipment. An enterprise can get a loan:

• For a fixed / floating interest rate;

• % Of commission will be calculated separately for each tranche.

Bank remuneration is always set individually, depending on the amount, currency, timing, financial condition of the borrower, the reputation of the organization and the level of risk. The commission varies between 10-20% per annum. The opening of a credit line will cost the borrower 2% of the limit amount. A renewable scheme may provide for a monthly commission for maintenance. Limits on the amount of one tranche can also be set.

Benefits of a legal entity

1. Save time: there is no need to arrange each transaction separately.
2. Interest is only accrued on the funds used.
3. Repayment occurs automatically when transferring money from counterparties to the borrower's account.
4. The interest rate for using the service is lower than for the targeted loans.
5. With the help of a loan, a client can increase working capital, cover unforeseen expenses, or send money to develop a business.

Credit in Sberbank: terms of service

The largest financial institution srayna provides a loan of up to 3 million rubles. At a rate of 19-19.5% without pledge and surety. The company can use these funds to replenish current assets or to develop its business. At the same time, the bank has the right to unilaterally freeze the tranches when the first financial difficulties arise.

The limit of funds for which the Sberbank credit line is provided depends on the specifics of the business, the particular project, the financial stability of the firm, the provision, the business reputation of the organization. With a large loan amount, you will need to make a deposit. It can be buildings, equipment, vehicles, stocks, securities. The size of the loan by 50-70% depends on the value of the collateral. The application is considered about a week. During this time, external and internal factors, liquidity of collateral are assessed. If the bank takes a positive decision, you can immediately sign a credit line agreement. Additional time for reassessment of assets will not be spent.

Some statistics

The need for enterprises in "long" loans reaches 900 billion rubles. Per year, but companies receive no more than 10% of this amount. The payback period of investments reaches 7-10 years. Sberbank is actively financing small businesses. About half of the organization's loan portfolio is long-term investments amounting to more than 600 billion rubles, which were provided to more than 1 million companies. For small businesses, the "Business" credit line was developed, within the framework of which it is possible to obtain borrowed funds for any purposes: from purchasing materials to OS and financing loans in other institutions.

news

It becomes unprofitable for banks to provide credit lines to legal entities. This is evidenced by judicial practice with bankrupt clients. Such claims are treated in the same way as for ordinary loans. The amount of funds that the client must return is calculated not from the loan limit, but from the gross amount of the payments made. Bankers consider this product not as one-time, but as renewable. As a result, the expenses of credit institutions are greatly increasing.

Option for individuals

Russians can also issue a credit line, but not all banks provide this service and only on bail. The latter is an open deposit. The goal is to finance a loan in another bank or to get working capital to start a business. Nevertheless, this service has advantages:

• The opportunity to use borrowed funds without breaking the deposit and interest on it;
• You can apply for a service at an emergency using a personal deposit as a security;
• The loan is provided in the form of opening an account with the bank;
• The minimum package of documents;
• The costs of collateral are not available;
• The interest rate is usually the same as that provided for the deposit, taking into account the small margin;
• There are no monthly commissions;
• A credit line can be opened in dollars, euros or rubles;
• The maximum period is six months.

There is another example - a renewable "credit card". Funds can be obtained at any time, and repay them with a deferral. This also includes loans for education, housing construction, when the money comes in tranches, and you can save on interest.

Conclusion

The credit line is a new type of financing for enterprises. The borrowed capital is given for a certain period. Means can be used when they are necessary. Interest is only accrued on the amount used. In this case, the rate can be fixed, floating or individual for each tranche. The credit line of the Savings Bank, depending on the need for capital, can be provided without collateral and surety. It is serviced at a rate of 19.5% per annum.