Warianty tytułu
Języki publikacji
Abstrakty
Credit guarantee funds are treated by companies as a source of long-term capital. They are, however, not a standard source, since they are an indirect capital raising instrument. An institution granting a guarantee facilitates access to credits and bank loans by taking responsibility for the repayment in case of a borrower's insolvency. Guarantees are a convenient form of authenticating a contracting party without appropriate covering of its own. As we know, banks require potential borrowers to present specified security of repayment of both the credit and its covering. Many Polish companies are limited in their access to credit for financing both their operation and their investment, due to a lack of means to secure the repayment. Therefore, it is often worthwhile trying to obtain a guarantee from a credit guarantee fund, in order to improve company's credibility and increase access to external sources of capital. Guarantee funds reduce a risk of financing a company and help create a favourable credit history. Banking institutions gain access to information about the company, thus reducing the credit risk. That risk is shared between the credit-taker and the institution granting a guarantee. (fragment of text)
Rocznik
Numer
Strony
70--77
Opis fizyczny
Twórcy
- Warsaw School of Economics, Poland
Bibliografia
Typ dokumentu
Bibliografia
Identyfikatory
Identyfikator YADDA
bwmeta1.element.ekon-element-000171210647
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