# For Spectrum LLC, own funds, based on balance sheet data, amount to 01.11.

When calculating the credit limit, formula 2.3 is used:

L = Kp * Ks * Kf, (2.3) where L is the credit limit;

Kp – the sum of probable revenues per week; Ks – revenue reduction factor; Kf – the ratio of financial condition and status of the enterprise.

From the total credit turnover in the calculation of K1 and K2 are excluded:

receipts from deposit, trust, loan accounts, receipts in the form of a contribution to the statutory fund, financial assistance; the result of transfers between customer accounts.

Thus, the “possible” receipt on the current account of LLC “Spectrum” for one week in such a month is UAH 294570.17.

Coefficient of decrease of receipts (Ks) at increase of receipts when K1> K2, Ks = 1; with decreasing revenues, when K1 756 304.42), then Ks = 1.

The ratio of the financial condition and status of the enterprise, which gives more complete information about the financial condition of the borrower topics for a narrative essay and its status and is calculated by formula 2.5.

Kf = Sum of weights / 100, (2.5.)

The current liquidity of the balance of LLC “Spectrum” is calculated by formula 2.6:

Cl = A1: 3, (2.6)

where Cl is the instantaneous liquidity of the balance sheet; A1 – the most liquid assets (funds and their equivalents – page 230 + 240 balance sheet assets); C – current liabilities (the result of section IV of the liabilities of the balance sheet).

Based on the balance sheet data of Spectrum LLC, the most liquid assets as of 01.11. 2001 to UAH 113,300, and current liabilities to UAH 212,500.

This ratio positively characterizes the prospects of payment opportunities under the condition of mobilization of TVO “Spectrum” at the expense of debtors. It shows what part of the short-term liabilities the company can repay from liquid assets.

The ratio of permanent capital to short-term borrowed funds is calculated by formula 2.7:

Quid = (Vz + Dzs): Kps,

where Quid – the ratio of permanent capital to short-term borrowed funds; Own funds (the result of the division and liabilities of the balance sheet); Dzs – long-term borrowed funds (the result of the division of III liabilities of the balance sheet); KPS- – short-term borrowed funds (the result of the division of IV liabilities of the balance sheet).

For Spectrum LLC, own funds, based on balance sheet data, amount to 01.11. 2001 879700 UAH, long-term borrowed funds of the enterprise, no, short-term borrowed funds – 212500 UAH.

Based on balance data and appliedUsing formula 2.7, we calculate the ratio of permanent capital to short-term borrowed funds of Spectrum LLC.

The ratio of permanent capital to short-term borrowed funds gives an idea of ​​the structure of the company’s assets.

Based on the calculated coefficient of the amount of possible revenues on Sunday (Kp), the coefficient of reduction of revenues (Ks), the coefficient of financial condition and status (Kf) of LLC “Spectrum” we calculate the credit limit according to formula 2.3: L = 294570.17 * 1 * 0.85 = UAH 250.384.64

The company LLC “Spectrum” wants to get a blank overdraft, ie the overdraft is secured only by an unsecured guarantee of the head of the company – the borrower.

According to the Regulations on overdraft crediting of Oschadbank, the blank overdraft limit should not exceed 50% of the overdraft limit calculated on the basis of the Methodology. means of LLC “Spectrum” on November 1, 2001 according to the formula 2.8:

VZ = VK-NA, (2.8) where VZ – own – working capital; VN – equity (page 380 of column 4 of the Balance Sheet); NA – non-current assets (page 080 of column 4 of the Balance Sheet).

According to the Methodology of calculation, the overdraft limit of Spectrum LLC is UAH 125,192.00.

Thus, the selection, analysis of the financial condition and determination of the credit limit for customers who want to get a loan in the form of an overdraft in KV “Sberbank”.

Thus, the assessment of financial condition is a necessary condition for credit relations between the client and the bank an important place is occupied by the method of assessing creditworthiness. Criteria for assessing the borrower’s financial condition, as the study showed, are established by domestic commercial banks independently on the basis of a thorough and balanced assessment of the client’s financial performance, conducted based on comparative analysis of balance sheets, financial statements and their use.

19.06.2011

## Methods of lending to business entities. Abstract

### Each method of lending determines the appropriate form of loan account. The form of the loan account determines the mode of operation of the account, ie the order of documentation of operations for the issuance and repayment of the loan and their reflection in the accounting registers. To conduct lending operations, the bank may open the following loan accounts: simple (separate) loan account, special loan account and current account with the right to overdraft

Commercial banks, based on the priorities of monetary policy, their own interests and the needs of borrowers, can use different lending methods that determine the form of the loan account, the procedure for issuing and repaying, methods of controlling the intended use of the loan and debt management.

In banking practice, there are two main methods of lending:

one-time issuance of a loan for a specific period, when the issue of granting each time is decided individually, with the mandatory execution of a package of documents required to obtain a loan; issuance of a loan as the need arises for it within a predetermined period. In this case, the documents required for the loan, issued only once at the beginning of the loan agreement between the bank and the borrower. Such loans are issued within the limits of the credit limit set in advance by the bank, which is exhausted as the borrower uses the loan.

In world banking practice, the most common methods of lending are credit line, automatically renewable (revolving) credit, overdraft, overdraft.

Note that in domestic banking practice, we can identify and give preference to the following methods of lending to businesses:

in a single order; in accordance with an open credit line with a predetermined amount of on-demand (credit line, overdraft).

Each method of lending determines the appropriate form of loan account. The form of the loan account determines the mode of operation of the account, ie the order of documentation of operations for the issuance and repayment of the loan and their reflection in the accounting registers. To conduct lending operations, the bank may open the following loan accounts: a simple (separate) loan account, a special loan account and a current account with the right to overdraft.

A simple loan account is used in banking practice to reflect credit transactions both when issuing a one-time loan for a specific purpose and when providing loans in tranches within the credit line. Each loan can be issued only if you have a document that contains permission to issue it. The loan is repaid from the current account of the borrower at his own expense. Several simple loan accounts can be opened for the client. It depends on the number and types of loans he receives from the bank.

A special loan account is used when the borrower feels a constant or seasonal need for borrowed funds. The account is opened for the entire crediting period on the basis of a permit, but a special document is not required to perform the loan disbursement operation. Loan issuance operations are carried out by paying monetary settlement documents (payment for raw materials, labor, payments to the budget, etc.) directly from the special loan account.

The loan is repaid either by scheduled payments from the current account or through the use of a term liability with contingent maturities. Currently, this form of account is almost not used by commercial banks. The use of a special loan account is also possible when lending on a credit line.

The current account with the right to overdraft is opened to borrowers who enter into a special agreement with the bank to obtain a type of loan such as overdraft. The right to use the overdraft is granted only to reliable customers. In the agreement, the bank determines the maximum amount of the overdraft, or, in other words, the overdraft limit, the purpose of the loan and its duration, the terms of the loan and the procedure for its repayment.

It should be noted that among the methods of bank lending, the most common in the practice of Ukrainian banks are targeted short-term loans issued from simple loan accounts. These loans are one-time and serve specific commercial transactions. Thus on purpose assignments will allocate: for realization of concrete economic activity of industrial appointment (acquisition of a certain type of raw materials); conducting a trade and intermediary operation; acquisition of certain securities or commodity exchange contracts.

Beneficiaries of such loans may be organizations that do not have current accounts with the lending bank.

It is worth noting that a one-time loan is issued to meet a specific target need for funds for a specific period. This method is basic when lending to new customers who do not have a credit history that has not yet developed in this bank. As a rule, this form of financing is an unconditional contract, ie from the moment of the conclusion of the credit agreement certain obligations on terms are imposed on bank.

Ordinary (simple) loan accounts are opened for clients to issue a one-time loan. Repayment of arrears on these accounts is carried out in agreement with the borrower terms on the basis of urgent commitments.

An enterprise can open several simple loan accounts at once, if it uses a loan for several objects at the same time and, therefore, loans are issued on different terms, for different terms and at different interest rates.