Campaign Credit
The campaign credit allows for short-term financing of the needs of a company's long stock operating cycle. The bank grants advances to the company within a ceiling and a duration, in return for compensation.
It is intended for companies whose activities are seasonal. This notably includes agricultural activities with highly concentrated sales periods.
ADVANTAGES
- It allows for financing of significant amounts while waiting for the first sales.
- It secures the cash flow of a seasonal business throughout the duration of its operating cycle.
- The company only incurs fees on the amounts actually used and will repay with its receipts.
CHARACTERISTICS
- Rate: It varies between 7% and 9%
- Duration: Generally, it is set for 03 months (90 days)
- Amount: Min 500 million; Max 4 billion
- Repayment: Settlement of outstanding amounts and interest at maturity
- Documents to provide:
- Campaign point
- Campaign forecast
- Consulting agreement
- Balance sheet of the last 03 years of operation
- Guarantees: Goods stock pledge; Autonomous guarantee from the parent company mortgage; Shareholders' CPS; bank guarantee.