Tehnici operațional bancare - case study - SC Arcul de Triumf Târgoviște SRL

1. Description of the loan

S.C Arcul de Triumf Targoviste S.R.L applied for an investment credit of 200,000 RON over a period of 3 years for two equipments for cutting and modeling metallic structures. The interest on this credit is 8.5%.

The purpose of the investment is to increase the capacity of production of metallic confections with more than 15%. This will lead the company to being more competitive on the market and having the capacity of processing more orders in the same time.

In order to cover the value of the investment, the company appealed to two sources of financing:

- Non-reimbursable European funds (33.33% of the total value of investment, in value of 100,000 RON)

- Bank credit (66.66% of the total investment, in value of 200,000 RON)

The European funds were already approved and will enter into the company’s receivables at the end of 2012.

The collateral chosen is a land with an area of 668 square meters in Targoviste which values 250,152 RON, being one of the properties owned by S.C Arcul de Triumf Targoviste.

The source of reimbursement will be the monthly income of the company which will be paid in equal monthly installments according to a plan established previously. The credit application of the company is the first one, until now all investments being made with the owners’ private capital.

2. Description of S.C Arcul de Triumf Targoviste S.R.L

2.1 Company’s history

The company was founded in 1991. The object of activity according to CAEN code is 4525-Other special working execution services. The services that the company offers are: civil constructions, metallic confections, radio work, local shelter installations, electric installments and realization projects.

The main activity of the company is the creation of mobile phone infrastructure work and it consist in a mixture of services: acquisition services and realization of lease contracts land, obtaining construction authorization, realization of technical projects in order to obtain the authorization of construction execution of civil engineering works, execution of metallic confections, mounting of infrastructure works, installing the telecommunication equipments, the design and execution of electric power supply works.

The moment when the company became very competitive on the market was in 1997 when it won the auction for the contract with Dialog (now Orange S.A) for building their mobile phone infrastructure and also to do maintenance work for it.

S.C Arcul de Triumf Targoviste SRL obtained ISO 9001 certification for the management performance that was proven for its policy and strategy applied in quality, as well as continuing concern according to the quality and satisfaction of its customers.

The company has executed over 500 civil works and electrical connections for all types of GSM sites, including design and obtaining legal field authorizations (including the work of "site acquisition"), executed works in own labor.

The company has offices in Bucharest, District 3, Street Papiu Ilarian, no. 6 Block 42, entrance 2, floor 8, apartment 63;

The company is registered at the Commerce Chamber with no. J15/779 /1991 and has the fiscal code R922159.

2.2 The ownership structure

The company is a limited liability company that has three owners with equal rights. They

are Alexandru Anton, Daniela Anton and Constantin Barbu. The social capital increased from 50,000 RON in 2008 to 750,000 RON at this moment.

2.3 Employees and social rights

Currently the company works with a total number of 129 employees with individual contracts of indefinite period. The rights of employees have been paid to date and meet the legal provisions of the minimum wage. The company is up to date with the payment of the obligations to the state budget for the employees.

3. Credit history

According the Payment Incident Bureau statements, the company S.C Arcul de Triumf Targoviste S.R.L has no records of payment incidents in the database.

According to Court of Justice and Arbitrage by the Chamber of Commerce, the company isn’t subject of any litigation.

According to the Credit Information Bureau Database, the company doesn’t have any unpaid loans.

Also, S.C Arcul de Triumf S.R.L Targoviste has paid all its debts to the state budget. According to AEGRM, the company has no mortgages on any of its properties.

Until now, S.C Arcul de Triumf Targoviste S.R.L didn’t have any relations with the Bank

Transilvania.

The company has a current account opened to BRD, Targoviste Branch and account number is 251100996013489.

The three owners, Alexandru Anton, Constantin Barbu and Daniela Anton have managed to finance the previous investments with their own capital, this being the first credit application.

4. Market/Industry analysis

4.1 Analysis of market/industry

S.C Arcul de Triumf Targoviste S.R.L is operating only on Romanian territory, mainly in Muntenia region. The company is estimated to be the 5th in the industry of constructions with 9% market share. The industry trend for some types of services (metallic confections) is ascending, while the trends for other type of services is descending (civil constructions). That is the reason why the company wants to invest more money into the confections of metallic structures, the number of orders increasing for this service more and more, being now overwhelmed with a big number orders for this type of service. Moreover, this service generates the biggest part of the turnover. The company applied for the loan in order to be able to supply the demand for this service.