Business clients › Financing › Help with financing

Help with financing

1. The process of taking a loan
2. Documents necessary for financing
3. Application forms
4. How to compose a business plan
5. Acceptable guarantees
6. Our Partners

1. The process of taking a loan

The following steps have to be completed in order to get financing from the bank:

1. Preparing the application form
In this stage, the project has to be thought out carefully, with the concrete goals set and financing opportunities weighed. After this is done, all the ideas should be written down in the form of a business plan. It might be worthwhile engaging a consultant from the outside to advise the project.
2. Submitting the financing application
After having written down Your thoughts, please fill out a personal offer application form, or come to the closest bank outlet of office, together with other necessary documents. A client relations manager will contact You to discuss any details on the application.
3. Processing the application
In this stage, the application is analysed at the bank and prepared for a positive decision from the credit committee. In most cases (except for Quick loan, which is processed faster), the analysis takes from one to two weeks time. This time period can be made shorter only if the documents are correctly filled out and the client is prepared to cooperate actively.
4. Finalising loan and guarantee contracts
In case of a positive decision, bank’s lawyer will prepare a simple written loan contract between You and the bank. The contract needs to be signed by the authorised persons from Your company and the bank. The guarantee contracts will be finalised, depending on the type of the guarantee, either in simple written form or at a previously agreed time in the presence of a notary. After signing the loan and guarantee contracts the bank will transfer the loan amount or open a credit.
5. Repaying the loan
By signing the loan contract, the term and repayment schedule is agreed upon. As a rule, the repayment takes place as periodic instalments. The required amount will be deducted from the client’s current account at a date agreed by both parties. As a rule, the company is obliged to inform the bank of its financial status during the loan period by presenting quarterly financial reports.

2. Documents necessary for financing

Information that is required of the client

Decision by the authorised body to attain the loan/guarantee/factoring
Copy of the document identifying the signee
Business plan either in written or oral form
Financial year statement. An active business should present the statement from previous financial year and, it is recommended, the balance sheet and profit report from the current financial year (not older than 3 months).

Information that might be required of the client

Application (on a Sampo Pank form, in simple written form, or by e-mail)
Financial projections (investment loan applicant)
In case of projects that need to be licensed: copy of any licenses and certificates required
Agreements with partners
Abstract of the environmental impact report
Licenses for building, property use, resource use etc.
Lists of assets
Other information necessary for processing the loan application
Documents connected to guarantees/warranties

3. Application forms

4. How to compose a business plan

Submitting a business plan is part of the process of applying for a loan. For the bank, business plan is a well-structured document that gives an overview of the goals of the project and the steps that will be taken to reach them. By giving a loan, the bank wishes to get it back with interest.

By analysing the business plan the bank assesses the applicant’s:

risks pertaining to the project on returning the loan
flow of income pertaining to the project and how it effects the repayment of the principal and interests

The business plan may be differently composed but we recommend that it follow the structure given below:

1. Overview
Name of company, idea for business and description of work, short overview of business plan, loan requirement (cost of project, own resources, pending loans, presumed need). The object of such summary is to reason, in short, the initiation of the project and the presumed return.
2. Information regarding the company
General information, list of owners with educational and career backgrounds, short history (past achievements and problems), current situation (attention on the strong and weak areas, which actions are to be taken), mission of the company, goals for the following years, vision for the future.
3. Competition
The main competitors on the market, their market share and position, graphic analysis of the position, comparative matrix.
4. Market and consumers
Description of the market (overall and segmented, geographical locations, target market (definition, characteristics), potential market magnitude, sales prognosis (chronologically and with reasons given).
5. Product or service
Description of product or service, and status (readiness for sale), advantages, clients’ segment of the market or the amount of potential consumers, price politics.
6. Marketing strategy
Starting points and main principles, additional services and guarantees
Price setting (goal, principles of price setting, calculations)
Conditions of payment (means of payment, deadlines, special offers)
Channels of distribution (points of distribution, means, pre-agreed sales contracts)
Advertising (principles, channels and means, expenses, campaign schedule)
Everything else pertaining to sales
7. Production and other activity
Technology and equipment (possible alternatives, choice of application and reasons, existing means, additional requirements, ways of procurement, choice of procurement and reasons, any signed and prepared contracts)
Location, raw material and other materials (ways of procurement, choice of procurement and reasons, any signed and prepared contracts, continuous supplying guarantees and risk)
Environmental impact
Labour force, partners and subcontractors
8. Leadership and administration
Organisational and legal structure
Key personnel and their team information (name, position, education, functions at the company, experience, strong and weak characteristics, compensating for weak characteristics)
9. Starting the project
Necessary presuppositions for starting the projects
Description of process
Schedule
10. Risk, guarantees and collateral
Analysis of the possible risk factors:
Risks from the outside
Risks from internal weaknesses
Guarantees offered to the lender
11. Financing the project
Current status
Financing sources (assets of owners, expanding own resources, long and short term loans), projected expenses as a table and with explanations (changing and constant costs)
Profit plan
Balance sheet
Flow of income report
Analysis

5. Acceptable guarantees

The following guarantees are acceptable for applying for loan and guarantee:

mortgage on real estate
pledge on a term deposit at Sampo Pank
pledge on security papers
warranty from a legal or physical person

Warranties are accepted primarily as additional guarantees.

In case of material assets, either an expert assessment or the details of the collateral offered (list of principal assets including time of procurement etc.) are required.

In case of real estate, an evaluation act must be presented to the bank, run by a real estate company accepted by the bank.

Guarantee must be insured to Sampo Pank at an insurance company accepted by the bank.

Internet Bank:

Business clients