Current-Account-Loan

Current account loan – PrestaFlex helps a Swiss-German company to grow

What is our client’s situation?

We obtained a current account limit for a family-owned company specializing in planning, consulting, general construction services, and civil and structural engineering services. After many years of experience, the founder decided to launch his company, which is now two years old. Due to a lack of cash flow, the company was unable to develop.

What solution did we provide to this company?

  • Type of financing: Current account loan
  • Amount: CHF 150’000
  • Overdraft: Overdraft facility at an interest rate of 2.5%
  • Timeframe: The procedure took 3 weeks

The company is in full growth and wishes to expand rapidly in its market.
This solution will allow them to:

  • Expand their business to meet their order book.
  • Obtain flexibility in the use of the credit to take care of the debts.
  • Cover a lack of liquidity to avoid working on a tight schedule.

Why the current account loan represents an advantage for a young company?

The type of credit used for this form of financing is operating credit. Therefore, a company will use the current account limit to make urgent acquisitions, secure liquidity, compensate for turnover fluctuations or develop new services. An overdraft can be granted up to a certain limit. However, the duration can be unlimited.

The following advantages should be considered:

  • The current account credit can be used at any time
  • A framework agreement is adapted to your needs
  • The limit can be issued in several currencies
  • This credit is intended for the short and medium-term
  • There is a possibility to adjust your limits upwards

The credit limit will make the company more competitive.

How do the interests and commissions for a current account credit work?

Current account loans are generally closed at the end of the quarter:

  • The bank charges interest on the amount used or credits the interest if the balance is positive.
  • Every quarter, the bank grants itself a 0.25% commission. The calculation is made either on the maximum amount of credit used or on an average amount.
  • If the credit limit is exceeded, the customer will have to pay interest or commission on the excess credit.

It was a successful deal by Suayib Korkmaz

PrestaFlex consultants travel all over the country, but Suayib Korkmaz supported his client in the German part of Switzerland. Indeed, it is not far from Zurich that we were able to extend our expertise.

A site visit, numerous discussions with the founder, and good negotiations with the banking partners were necessary to find the appropriate alternative.

Even though the company is young, they are already working with two customers in the German-speaking part of the country, which reinforced our support initiative.

This company has a good development perspective

Suayib Korkmaz was able to identify an opportunity by considering the business sector and the future orders of his customer. With a thorough analysis of the file and the construction of a precise plan of the company’s financial statements, he perfectly understood the vision of the entrepreneur. He was able to advise his client by providing financing options and contacted our banking partners to facilitate communication between the three parties, namely the client, the advisor, and the partner.

Moreover, by maximizing the proximity with the customer and keeping a high level of trust, we are also able to offer other alternatives. This is why Suayib Korkmaz maintains contact with his client for future deals.

Why should you work with us?

By trusting us, you have several advantages:

  • We provide simple and convincing solutions
  • We serve you quickly and discreetly
  • We defend your interests
  • We take care of all the administrative formalities
  • We structure your files
  • We find the best rates

If you would like to obtain fast financing for your company with simplified procedures, you can contact Suayib Korkmaz in the German-speaking region, who can be reached by phone at +41 79 251 79 18 or the following email address korkmaz@prestaflex.ch. He will answer you as soon as possible and will treat your project with care.

Article written by Ivan Popovic