The present instructions aim at helping the loan applicants with the preparation of the economic rationale. Its exhaustiveness, accuracy, and realistic presentation are a prerequisite for the right judgement of the credit transaction on part of the Bank regarding:
- The assets by groups and assessment;
- The receivables from customers, the main debtors and the date of forming the receivable;
- The loan applicant's liabilities to other banks, by amount, repayment plan, collateral, interests due etc.;
- The company's liabilities to suppliers, the main contractors with amounts outstanding to be paid to and the due payment date, the "time of the delay", including "Other Liabilities" - code 5150 of the Liabilities in the Balance Sheet;
- The prognostic data about the cash flow for the entire term of the loan applied for, in the form of National Accounting Standards 21, periodically, as agreed upon with the Bank.
The final objective of the economic rationale is for the loan applicant to prove the return on the loan as a result of its activity. Despite the big volume of information, it should be noted that the information is readily available. i.e. every company should have it, and the preparation of the economic rationale simply boils down to its summarization and presentation at the Bank.