Financing
As a Bank, we can be exactly, as successful, as our customer are, thus our aims are common.
It is crucial for us to support your business with a range of loans to suits your needs, and help to find the best financial construction. Our loans are designated to give your business the support it needs, making extra finance available for you to continue to develop your business. It is our purpose and duty to find comprehensive solutions, while we’re considering not just financial background, but the current situation, micro-environmental opportunities, and future plans. Loan from OTP Bank, you can finance your plans for future growth. OTP Bank offers all traditional loans (e.g. investment and working capital loans) to facilitate successful corporate operations.
We’re working hard every day, so your plans and visions can turn into reality.
HUF and foreign currency loans
OTP Bank and the Bank Group offer forint and foreign currency loans to help your company to achieve your goals successfully and profitably. Depending in financing needs, we offer the following loans:
Bank guarantees
If your business partner requests your company to provide guarantee for the performance of its contractual obligations, consider submitting a mandate to the Bank to undertake guarantee. OTP Bank issues bank guarantee in both forint and foreign currency for the term you request.
Forint or foreign currency bank guarantee
A bank guarantee is OTP Bank’s independent assumption of obligation to ensure the fulfilment of the payment and performance obligations of your company. OTP Bank shall, under the conditions specified in the bank guarantee statement, effect payment to the beneficiary. Unless stipulated to the contrary, the bank guarantee is irrevocable.
The most frequently requested bank guarantees are as follows:
- payment guarantee,
- advance repayment guarantee,
- loan repayment guarantee,
- good performance bank guarantee,
- tender guarantee,
- bidding guarantee.
How does it benefit your company?
A bank guarantee is OTP Bank’s independent assumption of obligation to ensure the fulfilment of the payment and performance obligations of your company. OTP Bank shall, under the conditions specified in the bank guarantee statement, effect payment to the beneficiary. Unless stipulated to the contrary, the bank guarantee is irrevocable.
Terms and conditions
- Term: short- or long-term
- Guarantee fee and other fees: as per the Announcement
Special agricultural loans
OTP Agro-Development Loan
A long-term development loan can be used for financing arable land purchase, investment, loan redemption and every type of financial needs.
More in HungarianAgricultural Direct Payments Pre-Financing
The OTP Direct Payment-Factoring constructions is the perfect solutions for pre-financing the agricultural subsidies from the Hungarian State Treasury.
More in HungarianAgro Széchenyi Card
Free-use overdraft facility with preferential conditions, as interest and guarantee fee subsidies, especially for companies operating in the agricultural sector.
More in HungarianAgro Széchenyi Investment Loan Max+
This facility with state aid, can be used for agricultural investment loan targets and related current assets.
More in HungarianOTP Green Corridor
Are you a beneficiary of EU funding? Complex solution for you.
More in HungarianLoan covered with warehouse receipt
If your agricultural products (own production or purchased) are in a storage, and you want to wait for better selling opportunities, or you just need it later, help your own liquidity with our loan covered with warehouse receipt.
More in HungarianIntegrator Loan
In HUF or in EUR? It’s your choice. Working capital loan with the possibility of revolving, for production financing.
More in HungarianOTP Agro-Entrepreneur Overdraft Facility
Credit product for your company’s liquidity problems. Flexible structure and revolving construction without real estate collateral.
More in HungarianFactoring
Factoring means the purchase and assignment, prior to their due date, of short-term receivables with deferred payment, evidenced with a commercial contract and an invoice.
OTP Bank purchases your receivables for an amount less the interest due on the period between the date of the advance payment and the due date (i.e. at a discounted value). OTP Bank stipulates a right of recourse during the factoring process.
How does it benefit your company?
We grant you free use sources by the purchase of deferred revenue, which is from selling, service, or because of a contract or the law.
Faktoring
OTP Bank concludes both case-based and master agreements for a factoring credit line. We recommend that you conclude a master agreement if your company has a stable and permanent contract-based supplier-buyer relationship with the obligor. Based on the master agreement for a factoring credit line, OTP Bank accepts invoices for factoring up to a determined amount within a set period of time. The credit line may also be revolving credit within a one-year period.
How does it benefit your company?
- Factoring enables you to have immediate access to cash.
- Factoring helps you finance an increase in your accounts receivable.
- Factoring does not require a banker’s draft, the assignment of the commercial invoice will suffice.
- The factoring credit line can also be used to factor EU grants.
Terms and conditions
- Term: factoring with maturity of less than one year
- Fees and charges: as per the Announcement
Contact us
Factoring Department
Mr. Péter Parragh
Head of Department
Tel.: +36 70 938 1679
E-mail: peter.parragh@otpbank.hu
European Union grants
OTP Bank provides assistance to companies that apply for EU funds.
European Union grants
The Bank’s support ranges from consultancy on compilation of applications, granting financing facilities to the implementation of projects. The Bank provides assistance not only for applicant businesses, but also companies implementing project.
Our consultancy firm: OTP Hungaro-Projekt Kft.
The objective of OTP Hungaro-Projekt is to guarantee the success of applications by helping the compilation of quality applications and offering financing.
Our motto: "Support from the Bank throughout the entire project cycle"
OTP Hungaro-Projekt offers its clients consultancy services, enabling them to work out their development concepts and compile subsequent applications. When mandated, the company also provides assistance with the implementation of successful applications. Project management is guaranteed by OTP Garancia Insurance Company’s liability insurance.
Recommended financing facilities
We offer your company numerous forms of financing to help finance its participation in EU tenders, replace its own funds, effect advance payments on subsidies and when the bank guarantees are needed.
Leasing
A market leader, Merkantil Bank relies on its experience in vehicle financing in managing the risks implied in the various loan transactions.
Our product range helps you find the type of financing that best suits your needs and expectations.
Merkantil Bank offers your company the following products:
- vehicle financing
- financing of production equipment and machinery
- real estate leasing
Specialised Lending/Project Financing
In the case of the realization of an asset or company purchase or development financed by credit facilities, where the source of the repayment of the loan is primarily the cash flow generated by the financed asset or activity.
Specialised Lending/Project Financing
OTP Bank provides the following special credit facilities:
- Project finance facility,
- Financing of cash-flow generating real estates (e.g. office buildings, retail and industrial properties, hotels)
- Financing of large-scale energy or infrastructure investments (e.g. power plants, water treatment establishments, industrial energy storage facilities, airports, hospitals, other special assets),
- Financing for projects exploiting renewable energy sources,
- Acquisition financing,
- Financing of PPP transactions,
- Financing of purchase of high value physical equipment or tangible asset,
- Financing of stocks or goods other than warehouse or classical stock financing arrangements.
Advantages
- Special credit facilities can be used to implement developments and projects that involve a higher risk than general corporate finance and require multiple credit products.
- In the case of special credit facilities, besides the special credit specifically financing the transaction, it is possible to use classic corporate finance products.
- In case of transactions with higher financing needs or due to the specifics of the transaction, it is possible to provide syndicated special credit facilities, the arrangement/origination of which can also be supported by OTP Bank.
- OTP Group has an extensive network of affiliate banks, so special credit facilities are available in many countries in Central and Eastern Europe.
- OTP Bank’s outstanding capital strength also makes it possible to deal with major financing needs.
Conditions
The conditions of special credit facilities (inter alia maturity, grace period, repayment structure, expected amount of equity, pricing conditions) are tailored to the specific nature of the transaction, based on consultations with the client.
Contact us
In case of credit applications related to any transaction in foreign countries or transaction in Hungary with a financing need over 1 billion HUF.
Specialised Finance Directorate
Dr. Miklós Németh
senior managing director
Tel.: + 36 1 298 4227
Fax: + 36 1 298 4225
E-mail: nemethmiklos@otpbank.hu
In case of credit applications related to transaction in Hungary with a financing need not exceeding 1 billion HUF, please contact OTP Bank’s local branch with corporate lending activity.
Syndicated lending and international financing
In the field of syndicated lending and international financing OTP Bank Plc offers the following services to its local and international clients:
- arrangement/origination of syndicated and club loans in the countries of OTP Group,
- participation in local and international syndicated and club transactions,
- agency role (general, paying, security agent) in syndicated and club deals,
- co-financing with local OTP subsidiaries in larger-scale financings,
- specialised lending products, structured finance, international guarantees,
- secondary market transactions,
- consultancy in consortial financing.
Contact us
Should you need further information on our services please contact our colleagues at the Structured and Cross Border Financing Department
Mr. Dr. Viktor Nagy
Head of Department
Tel.: +36 1 298 4565
E-mail: drnagyv@otpbank.hu
Mr. Balázs Fekete
Head of Structured Finance Unit
Tel.: +36 1 298 4344
E-mail: feketeb@otpbank.hu
Ms. Judit Simon
Head of Agency Unit
Tel.: +36 1 374 6997
E-mail: judit.simon@otpbank.hu
Forfaiting and Buyer’s Credits
Forfaiting is a form of financing that enables Exporters to receive immediate cash by selling their medium/long-term receivables (the amount a Buyer owes the Exporter) at a discount to OTP Bank.
OTP Bank provides the buyer or the buyer’s bank a medium/long term Buyer’s Credit in order to facilitate the fulfillment of the payment obligations of the Buyer under the commercial contract.
Contact us
Specialised Finance Directorate, Structured and Cross Border Financing Department
International Client Relations and Trade Finance Unit
Mr. Csaba Szilágyi
Head of Unit
Tel.: + 36 1 298 3101
E-mail: tradefinance@otpbank.hu
Forfaiting
Key characteristics:
- 100% financing (no “own contribution” of the Exporter),
- Without recourse to the Exporter (OTP runs the whole non-payment risk),
- For receivables with maturity exceeding 90 days,
- Transaction values can range from EUR 250 thousand to EUR 10 million or more,
- The debt is usually evidenced by a legally enforceable / transferable payment instrument such as a deferred payment letter of credit, avalised promissory note or a bank guarantee,
- Corporate risk can be accepted only in case of OTP group countries.
Buyer’s Credits
Key characteristics:
- The credit is provided to the Buyer (classic buyer’s credit) or the Buyer’s bank (bank-to-bank buyer’s credit), however the disbursements are made to the exporter,
- Financing is adjusted to the partial shipments/deliveries under the commercial contract,
- Amount of financing can range from EUR 500 thousand to EUR 10 million or more,
- Tenor is usually 1-5 years,
- Typically in EUR or USD (local currency funding – on a case-by-case basis),
- OTP Bank may require a guarantee from an export credit agency covering the risk of default by the Buyer,
- Classic buyers’ credits: corporate risk can be accepted only in case of OTP group countries.
