How do I get a loan for the execution of the State Treaty?
Many businesses go to profit sharing in tenders. Today almost every company can get a government contract. Only the customer needs to be able to trust that the winning company will work with him, and all work will be completed on time and with high quality. Additional costs are often required, and then you have to accept a credit for the execution of the international treaty.
In order for the customer and the company to work together, the following conditions must be met:
- Document security guarantee: The company provides a bank guarantee or takes out a loan for a loan.
- Refund of the advance payment if the obligations are not met;
- The company must have the right amount of money to implement the necessary plans.
A government contract loan is a type of loan that a bank grants to legal entities. The need for this arises from the winning competition. The money received is needed for:
- Order fulfillment;
- Salary payments;
- Payment for services;
- Purchase of equipment and tools.
Compared to a conventional loan, the execution of the state contract is done quickly. The application will be considered for a short time. The decision time can be extended, but this rarely happens.
Possibilities with credit
A loan to process a government contract opens up several options:
- Work on several projects;
- not to use working capital and send them to improve the company’s activities;
- Domestic assets are artificially replenished;
- Increasing the company’s competitiveness by implementing government contracts.
Money can be provided in the form of classic credit with interest or line of credit. Those wishing to open a checking account and a document on the organization of the offer in which the applicant is the winner In order for a government contract loan to be executed in a bank, several conditions must be met:
- Corporate work more than a year;
- Missing debt from suppliers and banks;
- positive reputation;
- Experience in carrying out at least 1 status sequence.
Often required to pay a deposit. It can be securities, real estate, raw materials, materials. It is also important to have at least 2 guarantors who can be entrepreneurs, heirs or co-founders.
The money is spent in dollars based on the following parameters:
- Size 1-50 million dollars;
- Term of the provision – contract duration + month;
- Payment rules are set individually;
- The rate is 14% per year.
The credit for the execution of the state contract is considered an effective tool. If you use it correctly, you can increase profits and reduce profits in the next tenders. If a loan is granted without security for the execution of a government contract, additional conditions may apply.
Characteristics of this type of loan
As a rule, winners of the OAEF require funds to fulfill contractual obligations. Spending can amount to thousands and millions of dollars. Therefore, the type of security and fulfillment of the obligations must first be calculated.
If the conditions of the document are not met, fines will be imposed, which will have a negative impact on the company’s development. It is important to fulfill all obligations in good time and according to the rules.
List of documents
To use the loan, you need to prepare the following:
- constitutive documentation;
- Financial statements;
- Management’s financial reporting;
- Tax certificates;
- Information about the promise;
- Data to fulfill these obligations;
- Documents with contractors;
- other important documentation.
Only if this list of documents is provided will it be considered an application for a loan to implement the State Treaty. Sberbank offers the best deals. The rate is 11.8% and the maximum amount is 600 million dollars. The loan period is 36 months.
Many Russian banks offer to grant a loan to carry out a government contract. VTB 24 draws profitable loans for long periods and large amounts.
Sometimes a field check is required. Work by the person who submitted the application. Be sure to analyze the credit history and financial options. Only then will it be decided whether funds are made available to the borrower.
Usually the money is generally spent when you need to provide security and specify the purpose. If you take out a loan for the execution of the State Treaty, the property rights of the document are pledged.
The procedure for entering into an agreement is similar to the standard. Registration allows participation in the state order if there are no large amounts of money. Spending money will help implement many plans.
A company that has 1 million dollars can make a deal with a government customer in the double-digit million range if the entire test is passed. This should be done before getting a loan.
Fulfillment of obligations
The bank can enter into a contract with a borrower, not a revolving credit line. Accordingly, the money deposited into the current account can be used to execute the contract. The borrower pays interest and the fee for spending funds.
Banks offer insurance services to ensure the security of property, health and credit. It is advisable to use this service. The loan will be of great help in implementing business plans.