Spot Credit

Generally granted to strong and medium-sized companies, the spot is a short-term cash credit that aims to contribute to the financing of a specific and punctual need in the operating cycle of a company.

ADVANTAGES

• It provides the necessary funds to bridge the temporary gaps in the company's cash flow.
• Its flexibility, the speed of releasing funds, its continuously adjustable terms (rates), and its low cost.

CHARACTERISTICS

• Rate: 6 to 12% exclusive of taxes
• Duration: from 03 to 24 months
• Amount: Depending on the turnover
• Repayment: at maturity
• Documents to provide:
  
  • Financing request;
  • Financial statements for the last 3 fiscal years;
  • Commented cash flow plan for the next 12 months (from the credit application date);
  • Assessment of the operating cycle through customer/supplier usages (payment terms and methods), commercial strategy, etc., to clearly identify the client's needs;
• The justification of the SPOT line is very important and must be based on the specific cash flow plan that clearly shows the emergence and end of the need that needs to be financed by this spot.
• Guarantees: Real guarantees (bank guarantee, pledge of Time Deposit, equipment, etc.)