Investment credit

Investment credit - is a special type of loan that is not identical to the long-term lending, although in most cases it still requires a longer period for the use of funds, as opposed to those programs that are issued for short-term working capital. It is worth noting that for this type of lending is characterized by a project that will be funded, whether existing or new, and its implementation will be sent to borrowers attracted credit resources. But at the same bank, which will act as an investor will take over most of the risks associated with the way the project will be implemented.


With regard to the result of a decision to credit the project it depends on how much revenue will the project. And taken into account the financial condition, which is present in the moment, the company, by income, creditworthiness, stability and solvency of the company and so on. The interest rate on the investment loan will depend on what exactly you contact the bank. Only then can the treatment of interest on investment loans can be calculated, starting from the requirements of the bank and the borrower.

The main features of the investment loan is something that should be involved in long-term resources, in other words, the borrower company can finance its current goals, with separately. There are kinds of investment credit: direct lending, financing of construction projects and project financing.

There is also a form of realization of the investment loan:
First. The loan is in the form of opening the line, this loan involves getting businesses the opportunity to take out a loan to pay for current expenditures within the terms and limits that were identified.

Second. Term loan will give you the opportunity to simultaneously receive the desired amount of money.

In general, the investment credit - is one way of financing the acquisition of basic funds. The most interesting is that the provision of an investment loan is even for the project, which is not very attractive or cash flow may be insufficient to service the investment loan. And this loan will help you to implement the latest projects. Therefore, this type of lending has long been very popular among companies that want to implement projects, and that lack of funds.