What is a loan?
These loans are not intended to finance current assets in general, and it went to finance specific origin of these assets. And in this regard we are exposed to study three types of loans.
Advances to the goods is a loan to the customer provides for the financing of certain inventory and get in return the goods as collateral for the loan. It should be on the bank, during this process, to make sure the presence of the goods and the nature and amount to their specifications and other related properties.
And the Bank should grant when embarking on this type of loan that is expected margin between the loan amount and the value of collateral, to reduce as much as possible from the dangers. Among the technologies that offer greater guarantees in the case of this type of loan is a mortgage financing in exchange for support.
Facts have proved that this type of loan is granted for private financing of basic materials such as coffee and others. And also it used in Algeria to finance manufactured goods and semi-manufactured.
2. public transactions:
Public procurements is an agreement to buy or carry out works for the benefit of the public authorities held between the latter represented by the central administration (ministries …) or local or administrative nature of public institutions groups on the one hand and contractors or suppliers on the other hand. And these deals are organized in Algeria and adjust the ways to implement the law by public transactions.
Due to the nature of the work carried out by the public authorities and especially in terms of its size and importance of the project and payment methods that are considered “heavy” relatively speaking, the contractor in charge of accomplishment finds himself in need of huge funds are not available in this case with the authorities. And so we are forced to resort to the bank to get the money to finance the completion of these works. These loans granted by banks to contractors for the completion of the works for the benefit of the public authorities Balzbiqat Ali called public transactions.
And banks can be granted two loans to finance public transactions:
– Granting guarantees in favor of the Contractors:
This guarantees granted by the bank to subscribers in the deal and to their security in front of the public authorities (Entrepreneur), and these guarantees are usually given to meet the four possible cases:
– Ensure access to the tender.
– Ensure implementation.
– Ensure security truncated.
– Ensure Alzbeq.
– Ensure access to tender: This warranty is given by the bank to avoid a customer who won the tender to provide liquid money as compensation if the concerned department pulled out of the project. And as soon as the bank’s sponsorship gives this fall for the customer to pay bail in cash.
– Performance Bond: This bail granted by the bank to avoid the customer to provide cash as collateral for the proper implementation of the deal in accordance with the appropriate standards.
– Ensure security truncated: When the project is completed, usually deduct Entrepreneur administration percentage of the transaction amount and maintained by a certain period as collateral. And even the customer avoids this ratio, and thus can benefit from them immediately, the bank offers him to ensure security truncated, and actually paid if the deficiencies appeared in the achievement during the warranty period.