Guarantees also for current account overdrafts

In the middle of September, under an annex signed by Bank Millennium to the Agreement with Bank Gospodarstwa Krajowego, the programme of guarantees for innovations was enhanced to include the availability of guarantees for current account overdraft facilities granted without the need to present invoices. Until that time the guarantees applied only to non-renewable loans: working capital loans and investment loans, with disbursement being made on the basis of invoices.

- The availability of a free-of-charge guarantee to secure the most popular business loan is good news both for companies as well as the bank. It reduces the formalities involved with using a loan to a minimum and enables financing of projects by companies, which have restricted access to loans. I am referring to companies, which due to the nature of their business do not have sufficient assets to secure repayment of financing. Time is running short however, because we will be accepting applications only until the end of December. - Agnieszka Kucharska, Head of the Corporate Banking Credit Products and Process Team of Bank Millennium explained.

Bank Millennium has been taking an active part in the de minimis guarantees programme for close to three years. Guarantees for innovations are a special type. They are granted under the special Guarantee Fund created in BGK with funding from Innovative Economy Operational Programme and secure up to 60% of loan value. The decision to grant the guarantee is taken together with the credit decision.

The requirements to get the guarantee are very simple. Apart from submitting documents typical for a de minimis guarantee, it is sufficient to present one additional document. This is a form confirming the satisfaction of one of seven essential conditions as well as listing documents corroborating the fact. Examples of criteria: “the company is located and is operating in a technology park” or “the company has had 10% annual revenue growth on average during the last three years”.

Guarantees for innovations - benefits:

• In case of a current account overdraft no need to present invoices
• 0% fee even if the financing is for many years
• High guarantee amount – up to 60% of loan value (maximum of PLN 3.5m)
• Long financing period – up to 24 months in case of working capital loans or up to 96 months for investment loans
• Simple procedure – activities involved with getting the loan and the guarantee are all done in one place – directly in Bank Millennium