Solvo Group, Inc
   
 
Home /Financing /Financing Schemes

Financial Services

Do not forget how we do business

  • Innovative ideas
  • Skilled specialists
  • Local knowledge
  • Access to capital

Let our experience work for you!

Direct Financing through Western Banks:

Financing is given general sum up to 85% of total sum of the contract maximum. The remaining 15% must be paid by the buyer to the seller as a deposit, no later than the first delivery by commercial contract and first payment for the credit.

To qualify for this type of financing, the equipment must be Europian, Canadian, or American. In this case, our company includes into the financing scheme the Export Credit Agencies (ECA) of the manufacturer’s countries and the agency acts as a guarantor. Substantial part of the credit will be insured by the ECA, which will considerably reduce the risk for the banks, and thus will reduce the interest rate of financing.

Receiving financing depends on the results of analysis of the project itself, the importing firm, and the guarantor. With this goal in mind, for us to be able to properly consider a specific project we will need the following documents:

  • Commercial contract (the signed or initialed)
  • Prof of registration of the importing firm
  • Regulation, or other documentation proving authorization of your firm to conduct international trade and enter into contracts with foreign firms.
  • Consolidated yearly balances and results of your firms activities for the past 3 years (2008, 2009, 2010, and whatever you have for 2011)
  • Technical-Economical description of the project, business plan, and cash flow of the project with an emphasis on the part that is being financed by the Western bank and with reflection on repayment of the principal and interest on the credit, including percentage of devaluation of the Ruble.
  • Under this structure of financing, all financial statements must be made in accordance to the International Accounting Standards (IAS)
  • Minimum of 70% of the total quantity of equipment and services under the said contract must be from one western country (i.e. manufactured in one country).

Financing from Western bank with participation of a Russian partner bank of Solvo Group.

The structure is very similar to the first one, but there is an additional guarantor – Russian Bank.

The loan will be provided by the Western Bank with mediation of first-class partner bank of Solvo Group – receiver of the credit or directly to the buyer with a payment guarantee from the Russian bank in the format and with context that is satisfactory to the Western bank and to the Export Credit Agency.

General Scheme is as follows:

  1. Western Bank with a guarantee from ECA transfers funds to the Russian bank.
  2. The Russian bank forwards the received funds to the client (ON-LENT MONEY).
  3. Credit agreement, signed by all parties, clearly describes the scheme of re-payment of credit.

The documents required are the same as those in the first scheme, but the International Accounting Standards on the Financial Statements are not necessary.

Direct Financing by the Russian Partner Bank of Solvo Group

The credit will be provided only by the Russian partner bank of Solvo Group. Accordingly, this is a more expensive form of financing, because of the high rates offered by Russian banks; however, Solvo Group, Inc. guarantees lowering those rates in comparison with rates for general manufacturers, since we have an agreement with our partner banks.

We will need many documents required by the Russian Banks. It is a lot, but we will help you prepare them.

  1. Regulation, or other documentation proving authorization of your firm to conduct international trade and enter into contracts with foreign firms.
  2. Scheme of product – capital flow of the company.
  3. Amount, term, and currency of requested loan.
  4. Aim of financing.
  5. Guarantee of Credits – type, value (market, balance).
  6. Readiness of founders to give guarantees.
  7. Readiness to insure the pledge with the companies that are recommended by the bank.
  8. Owned, leased property – general assets of the group (property, equipment and such with market value or balance value).
  9. Servicing banks, quantities of servicing (cash flow for the past 12 months).
  10. Profit from selling of product, and services, and cash flow for the past 12 months.
  11. Current loans, name of the banks, amounts, terms, and rates.
  12. Yearly Financial Statements for the past 3 years. IAS are not necessary.
  13. Picture of the owned property

 
Copyright 2006 - 2017,
Solvo Group, Inc.
All rights reserved