Purpose of financing
Type of credit facilities
Letter of Guarantee
Tenor of Credit Facilities

Fixed Asset Acquisition Financing
Alpha Bank finances different types of assets that could appear in a company’s balance sheet. More specifically:
The construction or purchase of property, plant and equipment (i.e. office premises, industrial buildings, machinery, other office equipment, transportation vehicles etc.);
Acquisition or participation in other companies’ share capital;
Trademarks and other intangible assets (i.e. licenses, the right to use buildings etc.).

Working Capital Needs
Alpha Bank finances activities that help cover a company’s short-term liquidity needs arising from its operating cycle. More specifically:
Cash flow shortfalls arising from a company’s credit policy towards its clients and the credit period set to the company by its suppliers;
Coverage of seasonal or period-specific needs (i.e. seasonality of sales);
Coverage of extraordinary needs for which provisions were not made in the company’s budget (i.e. extraordinary orders for purchase of inventory or raw materials, acquisition of inventory or raw materials in favorable prices etc.).

Other Financing Needs
Other types of client business activities are financed through different types of credit facilities (Letters of Credit and Letters of Guarantee).

• These are credit facilities of a fixed maturity and a predefined repayment schedule, and are granted
   to finance non-repetitive operational activities (financing needs of non-cyclical nature).
• Loans could be distinguished in the following three categories based on their repayment method:
• Equal installments
• Capital installments with or without a balloon payment plus interest payments
• Bullet repayment

Overdraft/Current Accounts
• These are current accounts with an overdraft facility. This type of credit facility is used to cover
   a company’s extraordinary operating needs arising from cash differences from its day to day operations.

Revolving Credit Accounts
• This type of credit facility is an arrangement by which the bank provides a company with a credit line
   for a predefined purpose. The borrower can utilize repeatedly the maximum agreed credit limit within
   the predefined period.

Letër Garancie

Through the issuance of a Letter of Guarantee the bank undertakes the responsibility to pay the beneficiary of the guarantee the amount stated in the letter, or part thereof, if the client does not fulfill the contractual obligations undertaken towards the recipient as stated in the Letter of Guarantee.
Guarantees could be used for a variety of purposes, such as to facilitate trade, secure legal liabilities, secure contract performance or cover potential customs liabilities.
Guarantees can be divided into different categories depending on the purpose of the guarantee to be issued:

The following are the most common types of Letters of Guarantee:
• Bid Bond/Tender Bond:
• Performance Guarantee:
• Advance Payment Guarantee:
• Payment Guarantee
• Other Guarantees

Letters of Credit

This type of credit facility is used in order to facilitate the execution of and secure payments in international trade. Letters of Credit are an important payment method since they facilitate trading activities between different countries with different cultures, trading practices, laws, mentality and interpretation of various trading terms.

Depending on the responsibility the issuing bank undertakes against the beneficiary, the L/Cs are divided into:
• Revocable Letters of Credit
• Irrevocable Letter of Credit

• Short Term (credit facilities with duration of up to twelve (12) months).
• Medium Term (credit facilities with duration greater than twelve (12) months and less than five (5) years).
• Long Term (credit facilities with duration greater than five (5) years).