Working capital financing

Areas of use

• Purchase of commodities, supplies, and goods
• Advance financing of orders
• Payment of outstanding supplier liabilities
• Coverage of rent, personnel, and consulting costs
• Financing of marketing activities
• Ensuring solvency

Advantages of a working capital credit

• Flexibility: Use the credit according to your individual requirements. The credit limit is always readily available up to a pre-defined amount
• Interest rates upon use: Interest rates and credit commissions only fall due for the amount used
• Expanded liquidity reserves: Bridging of (seasonal) liquidity fluctuations and ensuring your solvency
• Varied use options to pre-finance the operational business and improve one's position in negotiations with customers and suppliers

The typical forms of working capital financing are current account credits and fixed advances.

Current account credit

The current account credit is aimed at corporate clients that require additional liquidity in a given framework.

Customer use

• Flexible credit limit: Interest only falls due for the credit amount used
• Variable interest rate: Dependent on your creditworthiness and available collateral
• Usually involves neither time limits nor amortizations

Fixed advance

A fixed advance offers companies the possibility to cover their limited credit needs with the targeted borrowing of money. Capital, term, and interest rate are set in advance for the entire term of the credit. This gives companies a clear basis for their calculations.

Customer use

• Short-term commitment of capital and interest
• Interest rates are set in accordance with money-market rates
• Calculable debt financing
• No credit commission; transparent and simple cost structure
• Possibilities to hedge interest rates

In sum

These financing solutions provide flexibility and certainty to react to market changes and achieve your company goals. A working capital credit covers ongoing requirements, while a fixed advance covers specific short-term financing needs.