"Everything you would like to know about loan refinancing" (part 1) The conversation with Andranik Khachatryan, head of the management department of regional units of "Ameriabank" CJSC, and project manager Ofelia Martirosyan, here.
How to save money and grow the business?
We continue to talk about loan refinancing, and today Vahram Gevorgyan, manager of Ameriabank CJSC "Sayat-Nova" branch, will talk about the opportunities Ameriabank's offer creates for small and medium-sized businesses.
Small and medium-sized businesses have always been our "weak link", and in the current crisis situation, the situation of small and medium-sized businesses has worsened, especially if there are outstanding financial obligations. What can you offer entrepreneurs?
I would describe small and medium business as the most sensitive link, which is immediately affected by all changes in the economy and financial situation. That is why access to finance and the use of non-standard decisions are very important for small and medium-sized businesses. I agree with you that the situation of small and medium businesses has worsened in the difficult economic conditions. At the same time, the demand of small and medium-sized businesses for credit products is maintained, and this is not a consequence of the crisis, but a feature of the given sector. Small and medium-sized businesses always have growth potential, and there are relatively short-term business requirements, so there is always a need for banking and especially credit products. Here it is important to use banking products correctly. We are always ready to help clients make an appropriate decision, orient themselves on the type and timing of the product, and if necessary, develop non-standard solutions appropriate to the client's business.
As part of the campaign carried out by Ameriabank, you offer entrepreneurs such a credit product as business loan refinancing. Is your offer so profitable that it makes sense for the client to go through the entire process of formulating a loan again and spend time on it?
Definitely yes. Let me explain what this product is. Business loan refinancing enables customers with loans in other banks to transfer their loans to Ameriabank on the most favorable terms. At the same time, the Bank carries out the cost of valuation of the pledged property, notary certification and cadastral payments. The customer is also exempt from loan origination and service fees. During the study of the loan application, the Bank examines the features of the client's business, the problems faced by the business and then offers optimal solutions, which are not related to the convenience of repayment of the loan (although this issue is also being resolved), but to the very situation related to business development. So time is spent gathering information, understanding current and anticipated business issues, assessing customer creditworthiness, and more. We focus on the baseline metrics that are critical to sustaining and growing a business. In the case of lending, these are terms, interest rates, and the right product. And during loan refinancing, Ameriabank revises the terms in favor of the client.
The deadlines for making decisions on applications by banks usually raise doubts among customers...
I assure you that all processes at Ameriabank are organized as quickly as possible, hassles related to paperwork are excluded, and if the client provides the necessary information, he receives an answer within the specified time.
I would also like to draw your attention to the fact that it makes sense to refinance the loan not only in case of difficulties with repayments. If the borrower is servicing the loan in another bank without any problems, but there is an option to use own resources more efficiently, why not use it? This scheme is widely used in foreign markets, where borrowers use the full potential of the loan. It is especially necessary to take into account that small and medium business is the field where any resource, be it time or financial, refers to business development. Our proposal enables the entrepreneur to spend less funds for loan repayment and direct the freed funds to the further development of the business.
Does your offer provide for a flexible repayment schedule? Is it possible to combine several loans into one to simplify the repayment process?
We always carefully study the specifics of our clients' businesses. I can say that the diversity of companies, even those companies that operate in the same sector of the economy, is one of the main characteristics of small and medium-sized businesses. If necessary, we offer clients a flexible repayment schedule depending on the seasonality of financial flows. It is clear, of course, that if we are talking about a summer cafe, then the main financial flows are received in the summer months, therefore, it is more correct to distribute the credit load in such a way that most of the loan is repaid in that period. Very often, it is the Bank itself that offers a flexible repayment schedule, and not the borrower, because many entrepreneurs in the small and medium business sector do not even imagine that such a possibility exists. As for the consolidation of loans, there is no obstacle for this at Ameriabank. But before making a decision, of course, it is necessary to study the terms and purposes of loans in order to understand the advisability of combining several loans into one.
Other Armenian banks also offer loan refinancing. What is the main advantage of refinancing a loan at Ameriabank?
First of all, our refinancing offer is a very competitive product in terms of loan term, repayment schedule and interest rates. In addition, I would advise all customers to carefully study all the conditions, regardless of whether they are applying for loan refinancing or just to get a new loan, not to be tempted only by the advertised interest rate, to check, for example, the amount of the loan service fee, which can significantly increase the actual interest rate : As I already mentioned, we take care of almost all the costs associated with transferring the customer's loan to our bank. Thus, in our case, the declared interest rate hardly differs from the actual interest rate. Perhaps our main advantage, regardless of the campaigns carried out, is always the focus on the customer and the satisfaction of customer needs through package solutions.
Both in the case of loan refinancing and new loans, we always develop the most beneficial option for the client, which can combine in one package banking products that are used at different stages of solving business problems. In other words, a "credit basket" is formed, which can include such products as a loan, credit line, letter of credit, factoring, bank guarantee, purchase order financing, etc. Naturally, we have standard conditions according to which we provide financial resources, but within the framework of these standards, we build a loan or a package of offers every time, effectively creating a new product and a new solution for each borrower. When the client sees that our priority is not to get the maximum profit right away, but to create conditions for the growth of the client's business, that is when a mutually beneficial partnership is created.
Thank you Mr. Gevorgyan. I think entrepreneurs will appreciate Ameriabank's offer.
Tomorrow we will talk about an equally interesting topic. We will talk about how to save money, time and nerves, we will tell about the refinancing of consumer loans.
Source: tert.am