Financing

Working capital loan, including an fx revolving loan

Working capital financing in foreign currencies is a short- or long-term form of financing needs related, amongst others, to import or export operations:

The loan is sanctioned in any of the following currencies: PLN, USD, EUR, CHF, GBP, NOK for up to 36 months.
The loan is disbursed to the customer’s current account or against specific invoices.
A revolving loan may be renewed automatically for the max. period of 5 years.

Multi-purpose line

The line is earmarked for financing current operations and w/c requirements, issuing letters of credit (as security for opened L/C) and guarantees and for financing payments made against the L/C. The line allows to incur debt up to a specific amount and use all products operated within the sanctioned line. Each product disbursed within the line reduces the sanctioned limit.

Products sanctioned as part of the line:
- Overdraft,
- Working capital/ revolving loan,
- L/C limit/line,
- Guarantee limit.
Availability period – 12 months (with an option of renewal for a subsequent period).
Available currencies: PLN, EUR, USD, CHF, GBP.

Loan insurance for the Buyer

Insurance of export contracts performed by Polish entrepreneurs, financed by Santander Bank Polska and guaranteed by the State Treasury.

Advantages of the insurance:

Safe financing by the bank of an export contract by a loan with the repayment term of 2 years and longer.
Insurance conditions adjusted to international standards set out by the OECD and the European Union.
Possibility to obtain an insurance letter of promise for 6 months.
Compensation payment in the loan agreement currency.
Insurance policy represents security allowing banks to reduce the basis for creating specific provisions in the case of a given agreement, up to 100% of the sum insured.
Insurance of international export projects delivered by exporters from a few countries as part of one insurance policy.
Additional insurance of the production risk by exporters.

Insurance subject:

Based on a relevant loan agreement, the loan along with interest is made available by Santander Bank Polska to a foreign counterparty or their bank with a view to financing a specific contract on supplies of domestic goods and services financed by the loan with maturity of 2 years or longer.

The insurance may also cover bank fees and a loan financing the insurance premium.

Insurance scope:

Loan risk - Santander Bank Polska as an institution financing exports of domestic goods and services is ensured insurance protection against the risk of non-repayment of a loan with interest as of the loan disbursement day.

As part of the loan risk, the insurance covers also incidents triggered by the materialisation of the trading risk (legally confirmed debtor’s insolvency – bankruptcy, delay in the repayment of receivables) and the political risk (decisions and legal regulations of the debtor’s country, payment moratorium, disabled transfer of receivables, decisions taken in the insurer’s country, force majeure).

The insurance may cover receivables due from debtors located in most countries worldwide.

Forfaiting of receivables from L/C

Addressed to exporters whose payment for goods or services is secured by an irrevocable L/C with a deferred payment term or a B/E guaranteed by a bank whose risk has been accepted by Santander Bank Polska. Forfaiting consists in repurchasing receivables by Santander Bank Polska from an exporter prior to its payment term and transferring to the exporter’s account the amount of receivables reduced by discount interest.

Forfaiting enables the non-returnable receipt of funds improving the exporter’s financial liquidity and allows for the effective management of company’s finance.

Factoring

FAKTORING consists in buying receivables, their financing and managing by the Factor. As a result, the Factorer (supplier) receives payment immediately after executing sales and sending the Factor the copies of invoices along with documents confirming the receipt of goods. Initially, the Factorer receives an advance payment (whose level is determined in a relevant factoring agreement and may total 90% of invoice gross value), whereas the outstanding amount (guarantee fund) is paid at the moment when the client transfers the payment to the Factor’s bank account. In the case of delayed payments by the client, the Factorer may count on support from the Factor who will demand payment on their behalf.
Factoring is offered in domestic and international turnover with and without taking over the risk of the client’s insolvency.

Factoring means:

quickly available funds,
safe cooperation with a counterparty,
lower costs of managing receivables,
transparency of information.

Owing to the use of one of the safest systems servicing factoring transactions (Faktor24), the Factorer is ensured on-line access to data kept in an individual account 24h a day/7 days a week. Faktor24 allows to view specific information and reports referring to the status of settlements, balance, payment delays and arrears as well as serves as the basic registration tool.

Contact for small and medium enterprise:finansowanie.handlu@santander.pl