Innovative Crediting Options for Investors

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Sâmbătă, 23.09.2017 12:46   1643
Getting financial resources for business development is one of the biggest challenges for Moldovan entrepreneurs nowadays.

The standard crediting conditions in commercial banks are not always enough to step over this impediment, either because applicants don’t have enough guarantees or because of a short repayment period. 

There is a solution to address this hardship - the EUBusiness-EBRD Credit Line, a project of the European Bank for Reconstruction and Development. The project is being implemented by Mobiasbancă, which is currently the solely commercial bank in Moldova to work with the international lenders on preferential loan programs for business. 

Farmers are pleased of crediting conditions 

„At the beginning of this year I was looking for cash to buy agricultural hardware for working my fields. I visited many banks. I always do so. I’ve chosen Mobiasbancă for its offer and attitude. It’s true that it took a while before the loan was released and I was very eager to have the money - but the effort was worth it. With 81,000 euros I received - of which 10% is a grant - I have purchased a John Deer tractor, a plow, an Italian seeder, and a cultivator. Good hardware, of high quality, has cut down my expenses and I now can use the savings for expansion of my business,” says Mihail Borș, director and associate at Marineanca Agro SRL in Fălești.

The farmer boasts that two tractors are now just enough to work about 340 hectares of fields, while in the past he needed six machines to do the job. 

„Modern equipment has helped us harvest a better crop than in other years. If the machines are good, the outcome is good too,” Mr. Borș added.

The loan, which was offered for a four-year period and featured a 7% interest, is one of the first releases from the EU4Business-EBRD Credit Line project under Mobiasbancă’s management.

Tatiana Cebotariova, director of FPC Service-auto SRL - a cereals grower, says she is pleased of the Bank’s attitude towards its clients. 

„I needed a new, modern tractor and I was surprised how quick the bank adapted itself to our needs.

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The repayment schedule has been elaborated and negotiated the way that is most convenient for us. It was something we didn’t really expect. A client comes forward and tells what he needs and the Bank does the best it can to find a solution. Never before I have seen such an attitude,” Mrs. Cebotariova recalls.

Her enterprise was awarded a loan under 100,000 euros, for four years, and 10% of the sum is a grant. The company has used the funds for development purposes. 

A special credit line, encouraging clients to invest 

EU4Business-EBRD Credit Line launched in April 2017 and provided loan resources for business development to many small and medium-sized enterprises in Moldova. 

„This is a special credit as it encourages clients to invest into themselves and upgrade their manufacturing up to the European Union’s requirements. We give them cash to purchase and install modern hardware, to acquire new technologies, and others,” explains Dan Ursăchilă, head of the Bank’s Global Banking Transactions Department.

According to the manager, there is a standard procedure to obtain a loan: applicants are expected to submit information about their enterprises and an investment plan. They are also asked to let EU4Business-EBRD Credit Line consultants review any available technical documentation for applicants’ projects. The procedure as such is simple. Once the hardware is acquired, the beneficiary shares the purchase supporting papers to the Bank. If the expenses match the consultants’ recommendations, the grant portion is released to the beneficiary. 

„They can use the money for any purpose, it’s up to them: pay suppliers or partners, increase the working capital, etc. Therefore I am advising all small and medium-sized entrepreneurs to seize the opportunities offered by the EBRD via its EU4Business-EBRD Credit Line for investment enforcement and business development,” Dan Ursăchilă explained.

How to get a business booster

The Corporate Banking Commercial Director at Mobiasbancă, Elena Guzun, highlights the fact that the Bank is building up partnerships with European financial institutions on attracting international funds under the most favorable conditions for clients, including the grant component. It also supports SMEs’ capacity building and competitiveness enhancing. 

„We believe that thanks to this effort we are bringing about our direct contribution to the development of small and medium-sized businesses, which will further boost the growth of our national economy,” Mrs. Guzun stated.

In her opinion, business today does not venture into long-term investment and needs incentives. "To encourage business to craft investment projects, they need a very strong motivator such as access to markets. I think this is the most important: once you have found your market for sales, you are able to kick off production and build the technological chain, to create jobs, persuade the young to stay in the country and, consequently, boost the economic growth,” said the corporate banking commercial director.

Elena Guzun found that there was quite an interest in the international funding and the EU4Business-EBRD Credit Line project is part of it. More than two thirds of the 10 million euros which the EBRD provided for this credit line in late 2016 has been awarded to applicants or is pending a decision from EBRD technical consultants.

Mobiasbancă has been a partner of many international financial organizations thanks to its performance, honesty, and transparency. It lends money under attractive conditions and with additional benefits from the resources of the European Bank for Reconstruction and Development, from the European Investment Bank, the World Bank, the European Investment Fund, and others. 



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