A framework credit line (FCL) is an agreement between the bank and the client that the bank is prepared to promptly provide credit products (loans, guarantees, leases, letters of credit with a post-financing/discounting/deferred payment option, etc.) in a predetermined amount and on predetermined basic terms.
The framework credit line involves the conclusion of a general agreement on the opening of the FCL (preliminary agreement), on the basis of which the provision of credit products to customers of the bank is carried out on separately concluded contracts (main agreements).
Credit conditions are determined individually, depending on the financial condition of the client, his needs and peculiarities of his activities.
Thus, the client has the opportunity, without re-submitting the necessary documents promptly receive funds in installments, as required, within the established limit and term.
Main advantages of the framework credit line
- Possibility under one General Agreement on the opening of the FCL to obtain loans for the expansion of production, services, trade development through the acquisition of fixed and working capital, payment for work performed and services rendered;
- Possibility to obtain different types of credit products: loans, leasing, letters of credit and guarantees, based on the needs/peculiarities of the client, within the framework of one General Agreement on the opening of FCL;
- Possibility to receive and repay an unlimited number of credit products within a set limit and term under one General Agreement on the opening of FCL;
- Collateral is provided separately for each main agreement concluded under the General Agreement on opening of FCL, or under the General Agreement on opening of FCL for the entire amount of FCL. This enables Clients to collect the necessary documents once and execute the collateral.
- Possibility of obtaining credit products in different currencies - in national and/or foreign currency;
- Reducing the costs associated with the implementation of financing and registration of collateral.