SG EXPRESSBANK WILL EXTEND QUICK CREDITS TO SMES
Crediting of companies, especially of small and medium-sized enterprises (SMEs), will be a priority in the policy of SG EXPRESSBANK this year. The aim is to make these loans as popular as the consumer credits, allocated without guarantees. The bank hopes that the finances extended to small and medium-seized business would increase by 60% and reach BGN300MN by the end of 2003. Clients will be attracted by advantageous terms, said Philippe Guidez, Vice President and Executive Director of SG EXPRESSBANK. Applications for a loan shall be answered within 48 hours, and no business plan or economic explanation of the reason for demanding the credit shall be required. The bank will be extending credits of BGN10,000 to BGN50,000, earmarked for turnover capital or for small investment projects. The term for repayment will be 18 months, but it could be extended by another 12 months if the loan is serviced regularly. The annual interest rate will be from 11.5% to 14 pre cent. The firms that shall apply for crediting should have been operating on the market for at least two years and have net annual proceeds of BGN60,000 to BGN1MN. In addition to the standard documents for tax and court registration, SG EXPRESSBANK's clients will be required to present a report about their proceeds and expenditures for the last two years. A mortgage, personal assets of the owners or of the company will be accepted as a collateral. SG EXPRESSBANK offers several new products to its business clients. SG Express Businesscard saves time, because it makes possible to effect payments all over the country without the need of cash. SG Tempo Capital is intended for the better management of the firms' free money resources in the bank. This product brings a 2.25% yield on short-term deposits. SG Auto Finance is earmarked for the purchase cars and small light-duty trucks by companies. This scheme is currently offered for buying vehicles of the Renault, Citroen and Volkswagen makes, but the possibility for including other models is being discussed, too.As the BANKER weekly has already written, SG EXPRESSBANK will be managing the accounts of the project for the modernization and rehabilitation of the Maritsa Iztok 3 thermoelectric power plant. A consortium of Bulgarain and foreign banks has ensured its financing of EUR364MN.