Working capital loan

Working capital loan is meant for financing a temporary deficit of current assets or for increasing current assets. You are able to use, if necessary, the bank's cash within the limit set by the loan agreement.

Maximum term 12 months

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€
month
maximum term

12 month

%
€

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* Please note, that calculations are informative

Payment Schedule

Nr Date Loan Amount Interest Principal Payment Total Payments Outstanding Balance

Terms and conditions

The maximum amount of the working capital loan limit is determined by the client’s net turnover on his bank account in TBB pank, the client’s financial position, his credit history and the loan collateral

1. Application for a loan or guarantee may be submitted by legal entities registered in the Republic of Estonia or countries of the European Economic Area and the Organization for Economic Cooperation and Development (OECD). Loans and guarantees are not issued to non-resident legal entities, as well as to resident legal entities with at least one actual beneficiary who is a non-resident, except for residents of countries that are part of the European Economic Area and the Organization for Economic Cooperation and Development (OECD).
2. The ground for loan or guarantee to be granted is availability of proper collateral owned by applicant or the third person. The value of the collateral estimated by the appraiser approved by the bank shall exceed the amount of the loan applied.
The bank approves the following as possible collateral:

 ✓ time deposit with TBB pank

✓ bail or warrant of the third person

✓ mortgage

✓ pledge of other kind of real estate

✓ pledge

✓ pledge of movables

✓ pledge of securities

✓ revenues into the account with TBB pank

4. Interest is calculated basing on the year of 360 days

For further information, please contact loan manager by sending e-mail at laenuhaldur@tbb.ee

Necessary documents

✓ Foundation documents of a legal person:
  • Articles of association
  • Authorisation and licenses, if required pursuant to low

✓ Copy of the identity document of the representative of the legal person

✓ If there is a supervisory board, resolution (consent) of a supervisory board on appying for loan and granting collateral.
✓ Financial reporting:
  • Audited annual report for the previous financial year with an auditor’s report, if auditing is mandatory pursuant to law
  • Quarterly balance sheets and income statements of the current year that are not older than 120 days

✓ Business plan, if required

✓ Justification of need for a loan (for a short-term loan)

In case of collateral security:

✓ An extract from the relevant register or Land Register regarding the collateral;

✓ Contract of sale, acceptance and delivery report, commercial lease contract, etc;

✓ The decision of property owner in writing to provide assets as security;

✓ The power of attorney to sign the guarantee contract, if the contract is not signed by the property owner or his legal representative;

✓ The valuation report of collateral issued by an appraiser accepted by the Bank;

✓ Insurance policy for benefit of the Bank, issued by the insurance company accepted by the Bank (to be issued after the conclusion of the guarantee contract).

In case of suretyship /guarantee:

✓ Copy of registry card from Commercial register of a surety/ guarantor;

✓ Copy of surety’s/ guarantor’s articles of association;

✓ If there is a supervisory board, resolution (consent) of a supervisory board to provide suretyship/ guarantee;

✓ Surety’s/ guarantor’s audited annual report for the previous financial year, if auditing is mandatory pursuant to law;

✓ Surety’s/ guarantor’s quarterly balance sheets and income statements of the current year;

✓ Copy of the identity document of the private person –surety/guarantor or copy of the identity document of the representative of the legal person- surety/guarantor;

✓ Application form for private person-surety;

✓ Application form for enterprices-surety/guarantor;

✓ Private person- surety’s six-month account statement certified by the bank if income is not received in TBB pank;

The bank can also request additional documents needed to evaluate the client’s solvency.

Real estate valuers

Name

Official name

Registry code

Site
1Partner Kinnisvara

Arco Real Estate AS

DTZ Kinnisvaraekspert

Domus Kinnisvara

ERI Kinnisvara

Kaanon Kinnisvara Teenused OÜ

LVM Kinnisvara

Ober-Haus Hindamisteenused

Pindi Kinnisvara

RE Kinnisvara

Simus Kinnisvara

Seven Kinnisvarakonsultandid OÜ

Tõnisson Kinnisvarakonsultant

Uus Maa Kinnisvarabüroo

Colliers International Advisors OÜ

Newsec Valuations EE

Ühinenud Kinnisvarakonsultandid

Aarete Kinnisvara

Lahe Kinnisvara

 1PARTNER Kinnisvara Eesti OÜ

Arco Real Estate AS

Osaühing Kinnisvaraekspert

Osaühing DOMUS KINNISVARA

ERI KINNISVARA OÜ

Kaanon Kinnisvara Teenused OÜ

LVM Kinnisvara OÜ

OBER-HAUS HINDAMISTEENUSTE OÜ

Aktsiaselts Pindi Kinnisvara

RE Kinnisvara AS

OÜ Simus Kinnisvara

SEVEN KINNISVARAKONSULTANDID OÜ

Tõnisson Kinnisvarakonsultant OÜ

Osaühing KINNISVARABÜROO UUS MAA

Colliers International Advisors OÜ

Newsec Valuations EE OÜ

Ühinenud Kinnisvarakonsultandid OÜ

OÜ Aarete Kinnisvara

Lahe Kinnisvara Hindamine OÜ

 11027723

11346894

10708639

10887990

10476241

10881504

10033331

10144929

10677258

10462629

10553527

10394023

10638376

10307231

11330404

11930446

11550241

11024541

14318125

 www.1partner.ee

www.arcovara.ee

www.dtz.ee

www.domuskinnisvara.ee

www.eri.ee

www.kaanon.ee

www.lvm.ee

www.ober-haus.ee

www.pindi.ee

www.re.ee

www.simus.ee

www.7re.eu

www.tonisson.ee

www.uusmaa.ee

www.colliers.ee

www.newsecbaltics.com

www.upc.ee

www.aarete.ee

www.lahekinnisvara.ee

GUARANTOR`S CHECKLIST

Surety is a promise to fulfil financial obligations of another person or company (the borrower) on their behalf.

Provide surety only to a person or a company you know and trust.

Before providing surety

✓ carefully consider if you are able to perform the obligations of the borrower

✓ carefully consider your ability to meet payments, and provide surety only for the amount that you can actually repay (the maximum amount of the guarantor’s liability)

✓ carefully familiarise yourself with the surety and the loan contracts prepared by the bank

✓ do not hesitate to contact the bank if you have any questions. Seek legal advice where necessary

When signing the surety contract

✓ carefully listen to the bank employee’s explanations with regard to both the loan and the surety contracts

✓ do not be afraid to ask if something is unclear

✓ check that there are your correct contact details (address, phone number, email address) in the surety contract

When the surety contract is signed

✓ be proactive and monitor how the loan contract is being carried out. If the borrower does not answer your questions, make sure you address these questions with the bank.

✓ always inform the bank of any changes to your contact details (address, phone number, email address). This is the only way you can be sure that important information reaches you in time

✓ carefully read the bank notifications and make sure you read all registered letters addressed to you

If the borrower fails to fulfil his/her obligations, the bank then gives you an opportunity to perform the obligation. Do not forget that you have committed yourself to the contract and may have to perform the borrower’s obligation. By performing the borrower’s obligations, you can avoid additional costs and litigation. You have the right to demand from the borrower compensation of any amounts paid by you on behalf of the borrower.

DO NOT FORGET – THE SURETY IS YOUR OBLIGATION TO PERFORM THE CONTRACT ON BEHALF OF THE BORROWER!

PLEDGER`S CHECKLIST

A mortgage means when the loan is not paid back, the bank has the right to claim the sale of your the apartment or house (with the land).

Before you give your consent to set up a mortgage

✓ carefully consider if you are ready to take the risk of abandoning your own apartment or house if problems arise with regard to loan repayment

✓ decide whose obligations and what obligations in particular you are prepared to ensure

✓ you have the right to request draft contracts from both the notary and the bank – carefully study their content

✓ do not hesitate to contact the bank and the notary if you have any questions. Seek legal advice where necessary

When signing the notarized contract

✓ carefully listen to the notary’s explanations

✓ do not be afraid to ask if something is unclear

✓ make sure that the precise contract expresses exactly what you have agreed with the borrower and the bank

When the contracts are signed

✓ be proactive and monitor how the loan contract is being carried out. If the borrower does not answer your questions, make sure you address these questions with the bank

✓ always inform the bank of any changes to your contact details (address, phone number, email address). This is the only way you can be sure that important information reaches you in time

✓ carefully read the bank notifications and make sure you read all registered letters addressed to you

Where the borrower fails to fulfil his/her obligations, the bank then gives you an opportunity to perform the obligation. By performing the borrower’s obligations, you can prevent the sale of the pledged apartment or house, as well as avoid additional costs and litigation. You have the right to demand from the borrower compensation of any amounts paid by you on behalf of the borrower.

Requirements to insurance

1.1. Property that constitutes the security for the Credit Agreement or the Object of Lease must be insured with the insurance company accepted by the Bank until the Customer completely fulfils its obligations arising from the Credit or Lease Agreement under the minimum conditions stated in the present Procedure, depending on the type of the property.

1.2. It is allowed not to require the Customer to present the insurance policy in the following cases:

     1.2.1. a land plot without any buildings and without growing forest is used as the security for the Credit Agreement or as the Object of Lease;

     1.2.2. a plot with buildings that are not valuable, used as the security for the Credit Agreement or as the Object of Lease

     1.2.3. the credit/lease balance is lower than 10% of the cost of the immovable property that constitutes the security for the Credit Agreement or the Object of Lease;

     1.2.4. according to a decision of the Credit Committee and/or the Supervisory board of the Bank.

1.3. The first beneficiary stated in the insurance contract shall be the Bank or AS TBB liising.

1.4. The minimum conditions stated below shall be included in the insurance policy submitted to the Bank or AS TBB liising, and the owner of the property, at a request of the Bank or AS TBB liising, must submit all data and documents related to insurance of the property (including the list of the property).

2. Minimum requirements to insurance of the Property that constitutes the security for the Credit Agreement or the Object of the Lease Agreement (except for motor vehicles)

2.1. The insurance amount can be one of the amounts listed below:

     2.1.1. buildings and constructions (including flats) – the insurance amount many not be below their restoration cost;

     2.1.2. movable property (including cars, equipment and agricultural machines) – the cost of purchasing a new property (including VAT);

     2.1.3. other movable property (for example, ships) – the market value of the object;

     2.1.4. goods – the cost of replacement.

2.2. Property may not be insured at a lowered price.

2.3. Property must be insured at least against the following risks or under the terms and procedure described in the Credit/Lease Agreement:

      2.3.1. Real estate objects – fire, natural disaster (hail and storm, or hail and strong wind, etc), water leakage (or pipeline blow-out), vandalism.

      2.3.2. Forest – package insurance that in addition to forest fire covers damage caused by natural forces and wild animals;

     2.3.3. Goods (timber, metal), equipment, furnishing, cars and other movable property – fire, natural disaster, accidents at places of operation of machines, overturn and destruction of machines and illegal activity of third persons (theft, burglary and vandalism).

3.1. Motor vehicles that constitute the Object of the Lease Agreement or the security under the Credit Agreement must be insured with comprehensive insurance at all times until the Customer completely fulfils all its obligations arising from the Credit or Lease Agreement according to the minimum conditions stated below:

     3.1.1. Insurable value – the market value of the object;

     3.1.2. Obligatory cover of the following insurance risks – traffic accident, natural disaster, fire, vandalism, theft;

     3.1.3. Area of validity of the insurance contract – at least European countries (except for CIS countries).

MINIMUM REQUIREMENTS TO TRAFFIC INSURANCE OF A MOTOR VEHICLE

4.1. The motor vehicles that constitute the object of the Lease Agreement or security for the Credit Agreement must always have a valid traffic insurance until the Customer completely fulfils all its obligations arising from the Credit or Lease Agreement.

4.2. In case of movement of the vehicle beyond Estonia’s territory, it must be insured with and its driver must have the Green Card that confirms insurance cover also in the countries that are additionally stated in it.

5.1. In case of an insurance event the Lessee, the Actual Car User, the Borrower or the Owner of the security for the credit must undertake all measures for saving the property and avoiding its further damage, and to immediately notify the Insurance company and/or the Bodies of Legal Protection and/or the Rescue Service of the insurance event, and to notify the Bank/AS TBB liising within three calendar days of the damage caused to the property or of the circumstances related to its destruction.

6.1. The Borrower/Lessee undertakes to submit to the Bank/AS TBB liising the valid insurance policy within 7 calendar days following the start of financing of the Credit Transaction.

6.2. The Borrower undertakes to ensure constant insurance cover with regard to the pledged property and to present to the Bank the renewed insurance policy in a timely manner, i.e. 7 calendar days before expiry of the current insurance policy.

     6.2.1. If the Borrower does not submit the renewed insurance policy, the Bank has the right to insure the pledged property with an insurance company chosen by the Bank under the conditions described in the Credit Agreement. The Bank has the right to debit insurance payments from the bank account of the Customer in the Bank.

     6.2.2. In case of failure to submit the insurance policy in a timely manner, the Bank has the right to demand payment of the forfeit penalty in the amount designated in the Credit Agreement.

6.3. The Lessee undertakes to ensure constant insurance cover with regard to the leased property and to present to AS TBB liising the renewed insurance policy in a timely manner, i.e. 7 calendar days before expiry of the current insurance policy.

     6.3.1. If the Lessee fails to submit the renewed insurance policy 7 calendar days before expiry of the current insurance policy, AS TBB liising has the right to insure the leased property with the insurance company chosen by AS TBB liising under the conditions described in the Lease Agreement, and to demand from the Lessee compensation for the sustained damage.

     6.3.2. In case of failure to submit the insurance policy in a timely manner, AS TBB liising has the right to demand payment of the forfeit penalty in the amount designated in the Lease Agreement.

When ensuring property pledged in Estonia in favor of TBB pank, all registered in Estonia insurance companies that have been licensed by the Financial Supervision and published on a webpage are accepted:

Licenced Non-Life Insurance Companies in Estonia and Affiliated Branches of Foreign Insurance Institutions

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