Banking Techniques and Operations for Business Administration

1. INTRODUCTION

The aim of this project is to make a credit financial analysis on a company which activates in the agricultural industry. The company’s primarily purpose is to import new foreign agricultural machineries from Germany and send them in Romania, being also the unique dealer for some of the companies it imports for.

Beside the initial object of the business, the company also offers post-buying services, from technical indications and service at the domicile of the client, to assistance in the application for FEADR credits.

The objective of this project is to create an overview of the way a company can apply for a credit, and in our case, how all the needed documentation is applied.

2. Credit analysis

2.1. Description of the loan

Our company, having its headquarters in Pielesti, near Craiova, is requesting a medium term loan for 5 years to BRD GroupeSociétéGénérale, amounting 100 000 €, with a fluctuating interest rate, mainly because of the fluctuations of the exchange rate and the price of the imports, due to the fact that the current business consists in being importer of Claas, Amazone, Lemken, Hawe, Mailleux, Geringhoff, and Oehler.

This loan has as main purpose to open a new headquarters near Iasi, by purchasing and redecorating an old warehouse.

The main source of repayment will be the monthly cash flow of the company, coming from selling a wide range of harvesting machinery especially, powerful tractors, ploughs, soil preparing, and seeding, fertilizing and spraying devices.

The loan is secured by 1st rank mortgage: the purchased assets with the loan proceeds and with existing equipment and accounts receivable of the company. The arrangement requires a loan agreement, including also restrictive conditions that will reflect on the company’s operations and management during the term of the loan.

2.2. Description of the company

The current business consists in being importer of Claas, Amazone, Lemken, Hawe, Mailleux, Geringhoff, and Oehler. The entire range of agriculture and forestry equipments may be second hand too, for which the company assures the service in warranty and post-warranty and spare parts, depending on the kind of machinery. The enterprise also takes care of the customers, having a lot of experienced engineers which can offer technical assistance or can repair the destroyed equipment.

They offer a wide range of harvesting machinery especially, powerful tractors, ploughs, soil preparing, seeding, fertilizing and spraying devices.

The entire company is structured in departments: sales department especially for new machinery and also for the second hand ones, branch which appeared recently; financing consulting for the customers who want to buy agricultural equipment; service and spare parts for the ultimate models but also for the very old ones, for example harvesting machines produced around 1960.

On the other hand, the enterprise knows all the novelties in the agricultural domain and brings them to Romania in the shortest period of time, by organizing all sorts of events where the clients can try the new technology and decide if it fits their need or not, printing catalogues that the customers can take away. They make exhibitions and practical demonstrations directly to the clients.

SHAREHOLDERS’ STRUCTURE

The shareholders’ structure is formed by:

- 11% juridical persons

- 89 % natural persons, employees of the company

SERVICES/PRODUCTS

The service is offered by the distributor’s organization through service operations well equipped and leaded by technicians completely prepared and motivated. They are sustained by the newest information and support systems to ensure a high satisfaction and rapidity.