1- Where and how to apply to obtain a SOTUGAR guarantee?
The borrower shall first make contact with our financial partner (Bank, Leasing company, Investor in capital) to present the project and the type of financing (loans or shareholdings) requested. When the financial partner approves the application, he submits it to SOTUGAR.
The admission of financing (loans or shareholdings) eligible to the intervention of the different Credit Guarantee System managed by SOTUGAR is carried out on the basis of an application for guarantee duly filled, signed and presented by the financial institution intervening with SOTUGAR.
In addition to the application for guarantee, SOTUGAR analyzes, the documents relating to the file of the requested financing that is the business plan /the feasibility study and any document required by the intervening institution, depending on the nature of the project or the sector of activity (application of the investment, decision of granting advantages, certificates…) and any other document likely to facilitate the examination of the application of guarantee. If the request complies with all required conditions, a guarantee of financing is emitted in favour of the intervening institution.
2- How long does the guarantee take to be treated?
As soon as the application for a SOTUGAR guarantee is received with the necessary supporting documents, the file will be treated by concentrating on economic and commercial viability of the project suggested as well as its financial needs. The process of decision-making for the approval of a request can last up to two (2) weeks.
3- Guarantee fee
SOTUGAR perceives a guarantee fee which depends on the type of financing requested. It is a 0.6% in the form of annual interest rate for medium and long term loans or its equivalent flat varying from 0.9% to 2.6%, of 1% for the authorizations of the short term loans and of 3% for the shareholding in capital.
4- Cover rate
SOTUGAR shares the risk related to the financing of the investments with its financial partners by taking in charge a proportion from 50% to 75% of the amounts of the accepted financing to the guarantee (in accordance with the methods of intervention of the different Credit Guarantee System that it manages); (Credit Guarantee System, Guarantee Mechanism of Financial Strengthening, Guarantee Funds of Energy Efficiency, Guarantee Funds of Credit Export)
5- General principles
- The security taken or set to work at the time of the credit, will profit for Credit Guarantee System in proportion to their share of risk
- The guarantee systems profit from the clause of return to better fortune on their share of risk in case of later collection by the intervening institution.
- The guarantee is only related to a proportion of the principal amount of guaranteed funding except for the interests. This always implies that the intervening institution supports a part of the risk rising from the granted financing.
- The guarantee is always residual, that is the intervening institution can only appeal for it after exhaustion of all other collateral (real or personal) profiting to it.
- The maximum of the risk run supported by the Credit Guarantee Systems, by enterprise or group of enterprises cannot exceed the ceiling fixed by the legislative texts.