Long term loan with a fixed duration and amount for financing of pre-defined investment needs.
Used to finance corporate projects, purchase of fixed assets, real estate or construction. The installments are pre-agreed in the contract for the entire period of the loan.
Whom is it Suitable for?
Organisations that have a need to finance an investment project:
- Local and foreign companies
- Public and financial institutions
Criteria for Granting the Loan
Investment loan is a form of targeted funding, for which cost-proving documents are required.
For investment loans (over BGN 500,000) it is required to present a business plan and financial forecast (balance sheet and profit and loss statement for the duration of the loan, together with explanations of the business objectives and assumptions, on which financial forecast is based on.
Requirement for Self-financing Part of the Transaction
The bank requires the borrower to participate with its own funds up to a specified percentage - at least 20% of the total cost of the investment project without VAT. For some specific types of investment loans or in special cases it is reasonable to require a smaller part of self-financing.
Source of repayment is the cash flow generated from the proceeds of the financed investment, along with available resources related to the ordinary business of the borrower.
Frequently Asked Questions
The market appraisal should be renewed every year. The insurance must be maintained valid for the entire loan period.