Credit application

The credit application is the first step in the process leading to the conclusion of the loan agreement.

The very first step in applying for a credit application is information. We need to look for suitable loans for our company. This partly means the options offered by our account managing bank, but it is also worth looking around more widely.

When mapping credit schemes, it is definitely advisable to learn about and compare their basic characteristics below, if the company has several options to choose from:

• borrower (who can take out the loan?)
• loan type, the purpose of the credit (what is the loan for?)
• exclusions (for which activities can you not apply for the loan?)
• loan amount (what is the possible loan amount?)
• term (for what period of time can the loan be taken out?)
• interest (how much and what kind of interests must be paid for the for a loan?)
• bank charges (in addition to the interest, what additional costs should be considered?)
• utilization (what are the disbursement conditions, is there, for example, a period of availability, revolving credit, etc.?)
• repayment (is there a grace period, according to what schedule must the loan be repaid?)
• prepayment (is there a costs if we want to pay off the loan before the loan expires)
• collateral (what collateral should be offered?)
• financial institution (at which bank can it be applied for?)

When choosing a credit scheme plan, you must make sure that the chosen plan fits the needs of our company as much as possible, and that the conditions are the most favorable for the company.

If you have the selected construction, the credit application documentation can be compiled. You can usually find information about this on the bank 's website. It is advisable to contact the bank as well, it is also worth asking for direct information from the clerks. In practice, the preparation of loan documentation means filling out the loan application form and compiling the related attachments, as well as obtaining the necessary documents. Such attachments are typically a

• company documents,
• financial statements (closed years), trial balance (current financial year),
• tax certificates,
• bank information (if the request is not made at the account managing bank),
• other documents and certificates related to the purpose of the credit.

The completed documentation of the credit application must be submitted to the bank for credit approval. In the event of a favorable credit evaluation, the loan agreement and collateral agreements will be concluded. This is followed by the disbursement of the loan.