Services - Small And Medium-Sized Enterprices (SME)

Financing




We offer solutions to your needs, whether it be paying suppliers, financing the future development of your business, helping you with investment plans or financing your projects.



• Business Finance;
• Trade & Export Finance;
• Project Finance


Business Finance

HR Bank Overdraft Facility for SME

• HR Bank Overdraft Facility for SME was designed to provide you with swift and convenient access to additional liquidity.

HR Bank Overdraft Facility

• HR Bank commercial credits can be utilized on a current account basis in the form of fixed advances or documentary credits and bank guarantees. As such, these lines of credit can be repaid at any time and without notification.

HR Bank Fixed Advance

• The HR Bank fixed advance can be used to finance capital spending and working capital. The principal, the term and the rate of interest are fixed in advance for the entire duration of the advance.

HR Bank Libor Loan

• HR Bank Libor Loans offer you a flexible and attractive solution for financing your investments without a fixed framework term.

HR Bank Fixed-Rate Loan

• Used to finance capital spending over the medium to long term. The principal, any repayments, the term and the rate of interest are fixed in advance for the entire duration of the loan

HR Bank Overdraft Facility for SME

• Overdraft Customers have the facility of overdrawing their current accounts up to a previously agreed upon limit. Since both obtaining and repaying overdrafts is flexible and requires no formal requests or agreements, overdrafts are a convenient solution for short-term borrowing needs.

• Drawing against uncleared effects ("DAUE") DAUE refers to funds drawn on a customer's account against banker`s draft deposited to the same account but not yet processed and cleared through the banker`s draft clearing system. Repayment will be automatic through the clearance of the un-cleared banker`s draft.

• Business Overdraft (BOD) This is a variation of the overdraft facility where the customer agrees to credit the account with 3% to 5% (or higher depending on approved % in country's underwriting document) of the utilized amount over the next 30 days.

HR Bank Fixed Advance For Short-Term Investments

• The HR Bank Fixed Advance provides you with an additional temporary liquidity reserve. It gives you more financial freedom and at the same time increases your entrepreneurial flexibility, allowing you to respond to market opportunities quickly and in a targeted manner.

Key points

• Short-term capital and interest-rate commitment Interest rates based on money market developments

• Tailored adjustment to meet the specific funding needs

• Options for interest rate hedging upon request

Trade & Export Finance

Documentary Credits

• Documentary credits usually require the presentation of certain documents, which must be complied with before payment can take place. You must be aware that banks examine the documents only with respect to the documentary credit and do not look at contracts, agreements or the condition of the goods.
• We have compiled a set of checklists to help you make sure that every document is filled in correctly.

Overview of Documentary Credits

• Documentary Credits for Exporters
• For an exporter, a documentary credit from the importer's bank removes the risk that the buyer will not pay.

Documentary Credits for Importers

• For an importer, a documentary credit requires the importer to comply with the agreed conditions for payment is made.

Bank Guarantees

• HR Bank guarantee is an effective way of securing performance and payment in an increasingly challenging business environment.

Export Finance

• As a solution provider to world-wide exporters, HR Bank offers you individual financing solutions that optimally support the demands of your business.

Export

• Using documentary credits when you export goods or services means that the importer's bank commits itself to paying you when the conditions of the credit have been met. This offers a number of advantages:
* Payment guaranteed by the importer's bank prior to shipment
* Enhanced security of payment at the agreed time
* Enhanced security that the order received will not be cancelled or changed without your agreement
* Improved liquidity as payment often can be made shortly after shipment
* Possibility of extending security to subcontractors through the documentary credit
* The possibility of financing
* It is important to note that the importer's bank will make payment only after you have complied with all its requirements and conditions. You should therefore examine the documentary credit carefully when you receive it.

D/C For Export

• Documentary credit checklist
• Is the text clear and unambiguous?
• Are the terms and conditions the same as those you agreed on with your customer?
• Is the documentary credit issued by an acceptable bank?
• Is the documentary credit subject to the international rules for documentary credits - UCP 600?
• Can you comply fully with ALL the requirements?
• Are all the expressions in the documentary credit clear and unambiguous?
• Does the documentary credit contain contradictory requirements?
• Can the time limits for shipment and presentation of documents be met?
• Are the insurance requirements, if any, acceptable?
• Are the requirements for transport and transport documents acceptable?
• Is partial delivery or transshipment allowed, if needed? Are your name and address shown exactly as they appear in your documents?
• Are the buyer's name and address shown correctly?
• Is the description of goods the same as in all the other documents?

Risk & Financing

Confirmation

• The Bank will endeavor to confirm the documentary credit at the request of the issuing bank. This ensures that you will receive payment when you comply with the requirements of the documentary credit irrespective of the issuing bank's willingness or ability to pay. Nor will you be affected if the country stops payments or other unforeseen problems arise.

Silent confirmation

• Even if the issuing bank does not request the Bank to confirm the documentary credit, the Bank can usually offer you a silent confirmation. This puts you in exactly the same position as if the documentary credit had been confirmed. The only difference is that the issuing bank has not requested confirmation of the documentary credit.

Financing

• If you have granted your buyer extended credit (deferred payment) but you would like payment immediately, the Bank will endeavor to discount the draft under the documentary credit at a competitive rate.

Security

Irrevocable payment order

• An irrevocable payment order assures third parties that money will not be paid to you before they received the amount due to them. Be aware that payment orders are not subject to statutory regulations on debt. This means that, should you go bankrupt or suspend payments, an amount will be payable only after a court decision or arbitration.

Assignment

• An assignment also ensures that third parties will be paid ahead of you. Unlike an irrevocable payment order, an assignment is subject to statutory regulations on debt. This means that, in case of your bankruptcy or suspension of payments, an estate must respect the assignment if it is legally recorded and the debtor is notified.

Transferable documentary credit

• If the documentary credit is issued as a transferable documentary credit, you can have it transferred, completely or in part, to a third party. When you transfer a documentary credit, the following conditions can be changed:
* the amount and any unit price can be reduced validity, shipment and presentation limits can be shortened any insurance percentage rate can be raise

Export D/C conditions

• In our favor
• With or without HR Bank's confirmation
• For the amount of
• Available for payment at sight or for payment ... days after shipment
• Following documents Covering
• Evidencing shipment from ... to ...
• Terms of delivery
• Partial delivery (Allowed/not allowed)
• Transshipment (Allowed/not allowed)
• Latest date of shipment
• The Credit to be valid until
• The documents to be presented not later than
• Charges outside country of issuance
* The documentary credit must include the issuing bank's debit or reimbursement authorization and must state that the credit is subject to Uniform Customs and Practice for Documentary Credits, ICC Publication No. 600.



Risk & Financing

Confirmation

• The Bank will endeavor to confirm the documentary credit at the request of the issuing bank. This ensures that you will receive payment when you comply with the requirements of the documentary credit irrespective of the issuing bank's willingness or ability to pay. Nor will you be affected if the country stops payments or other unforeseen problems arise.

Silent confirmation

• Even if the issuing bank does not request the Bank to confirm the documentary credit, the Bank can usually offer you a silent confirmation. This puts you in exactly the same position as if the documentary credit had been confirmed. The only difference is that the issuing bank has not requested confirmation of the documentary credit

Transferable documentary credit

• If the documentary credit is issued as a transferable documentary credit, you can have it transferred, completely or in part, to a third party. When you transfer a documentary credit, the following conditions can be changed:
* the amount and any unit price can be reduced validity, shipment and presentation limits can be shortened any insurance percentage rate can be raise

Export D/C conditions

• In our favor
• With or without HR Bank's confirmation
• For the amount of
• Available for payment at sight or for payment ... days after shipment
• Following documents Covering
• Evidencing shipment from ... to ...
• Terms of delivery
• Partial delivery (Allowed/not allowed)
• Transshipment (Allowed/not allowed)
• Latest date of shipment
• The Credit to be valid until
• The documents to be presented not later than
• Charges outside country of issuance
* The documentary credit must include the issuing bank's debit or reimbursement authorization and must state that the credit is subject to Uniform Customs and Practice for Documentary Credits, ICC Publication No. 600.

PROJECT FINANCE

HR Bank combines strong legal skills with deep industry knowledge. We are regularly engaged in projects in diverse industries, including the following:

• Oil and Gas – including exploration, production, storage, refining, gasification and production platforms
• Petrochemicals
• Power and Energy – including thermal, nuclear and renewable, as well as power transmission and distribution
• Infrastructure and Water – including pipelines and water desalination and treatment
• Telecommunications – including cellular, cable, fixed and mobile
• Space and Satellite – including direct broadcast, broadband and satellite imaging systems
• Waste disposal and recycling
• Mining and Metals
• Natural resources