A credit line contains options for the provision of operating finance (overdraft, operating loan provided in fixed tranches), the issuing of import documentary letters of credit and banke guarantees, for a period of one year. It can be provided in CZK or a foreign currency. The client draws the contractually agreed products up to the amount of the total limit set by the bank for the whole credit line, or up to a limit set for a single product.
- Option of drawing more than one type of operating finance and bank obligations by a client under one credit agreement.
- Flexibility of alterations to structure of client’s operating finance according to its current needs.
- Collateral for credit line covers all products provided by the bank that it contains.
- Active use of various combinations of products included in the credit line for the client enables the optimisation of costs incurred in obtaining funds.
A credit line gives clients a great deal of room for active management of operating finance.
Drawing, repayment and course of financing
A credit line for various products is drawn and repaid in a similar way to that for products provided under independent agreements, i.e. similar to
- An overdraft
- An operating loan provided in fixed tranches
- An import documentary letter of credit and
- A bank guarantee
The process for financing is similar.
The requirements for collateral for the loan are communicated by the bank to the client primarily based on the conclusions of an analysis of its financial results.