Stock financing allows you to effectively manage your company’s current assets, granting access to finance secured by your goods or commodities in stock.
- Stock financing is suitable for companies with goods or commodities in stock as a large part of their current assets.
- Stock financing can be provided against product groups that can be identified based on an identification mark, or other high-quality marketable goods sold daily on international stock markets.
- You can use stock financing to cover the entire supply chain from production to end-users.
- Stock financing can also be tied to other financial instruments to cover the entire supply chain from production to end-users.
- The volume and extent of stock financing depend on the company’s need for financing and its risk level.
- The repayment term for stock financing (reusable limit) is generally up to 12 months.
Stock financing can be applied for when:
- The entrepreneur is registered in the Republic of Estonia.
- The entrepreneur has at least two years business experience with the commodity to be financed.
- The company and its owners have no overdue debts that have been postponed.
- The company’s equity capital meets the requirements of the Commercial Code.
- The company is capable of meeting the intended loan obligation.
- The company is trustworthy.
Bank generally accepts goods or commodities stored by the stock keeper as collateral.
- Audited (if the company is subject to auditing) financial reports from the previous financial years, as well as balance sheet and income statements for the current financial year, which are not older than two months.
- Storage contract concluded between the customer and the stock keeper.
- Financial forecasts for the next three years.
- You may be required to provide additional documents.