Lines of Credit

Consists of a credit facility whereby the bank approves a maximum use limit, whereby the client may dispose of funds to cover its financing needs.

The term of financing and form of payment in the use of this line will be determined in accordance with the operational cycle of the business and the flow of repayment of the assets financed. Likewise, the rates and costs of operation of the line are determined according to the company’s financial stability, the guarantees the support the credit and the market and competition conditions.

Some of the lines of credit available are:

Revolving Lines of Credit

  • Working Capital for financing the working cycle (Accounts Receivable, Inventory and Accounts Payable)
  • Capital Goods (Purchase of Equipment, Machinery and fixed assets in general)
  • Performance of Contracts
  • Discount of Invoices, Bills or Purchase Orders
  • Contingencies (Bank Guarantees, Collaterals, Bonds, Letters of Credit, among others).

Non-Revolving Lines of Credit

  • Provisional for Construction with option for becoming Long-Term loan.
  • Capital Goods for subsequent Medium-Term financing
  • Bank Guarantees and Promissory Letters

Likewise, within the line, the company may dispose of this financing through a wide range of banking products such as:

  • Opening and financing of letters of credit
  • Acceptance and financing of collection
  • Advances through Drafts or Transfers for payment to suppliers.
  • Advances from Treasury for use in the current account.

Overdraft Lines

Consists of a credit facility where a maximum limit in a current account is allowed. This type of facilities is appropriate for businesses with a high turnover of working assets, which are usually guaranteed by Time Deposits and Savings Accounts.

Purposes or Uses of the Line

Working Capital

Consists of a credit facility whereby the bank approves a maximum limit of funds which the customer may use to cover his financing needs.

The term of financing and form of payment will be established in keeping the operational cycle of the business and the flow of repayment of the financed assets. 

The rates and costs for operating this line are determined on the basis of the financial standing of the company, the collaterals securing the credit and the market conditions and competition.

Within the line, there is a wide range of financing banking products which the company may use, such  as:

  • Opening and financing of letters of credit
  • Acceptance and financing of collection
  • Advances by means of Drafts or Transfers for paying suppliers
  • Treasury advances for use in the current account

Purchase of Equipment and Machinery

Consists of revolving credit facilities and for the acquisition of real estate directly required in the reproductive cycle of the business.
The financing term depends of the useful life and period of natural recovery of the real estate that has been financed

Benefits and Characteristics

  • Opening and financing of letters of credit accepted to stand-by
  • Acceptance and financing of collection
  • Advances by means of Drafts or Transfers for paying suppliers.
  • Treasury advances for use in the current account.
  • Bank guarantee and promissory letter