The subsidies from the Slovak Guarantee and Development Bank are intended to contribute to the processing of timber with higher added value, which is undoubtedly the case for Zruby Rajec, producing turnkey wooden houses. However, the subsidy was not sufficient to cover the planned investment of ten million crowns, and since the company did not have enough internal resources, the question of a bank loan arose. In 2004, this led to cooperation with Tatra Banka.

Risk Distribution

Furthermore, the approved subsidy from the Slovak Guarantee and Development Bank was not immediately available to the company, which would have further delayed the investments. Given the indefinite disbursement date of the subsidy, Tatra Banka had to structure the entire project's refinancing so that it would be optimal for the client, considering the future receipt of the subsidy. The result was the division of the entire loan into a current account overdraft facility and a conventional installment investment loan, both in approximately equal amounts. The new cooperation with the Slovak Guarantee and Development Bank, or the European Investment Fund, which share the risk of loan defaults with the bank. This makes the financing more flexible.

Benefits of the Internet

Zruby Rajec settles its obligations within the framework of supplier-customer relationships and makes regular payments to state authorities and employees electronically. This not only saves time for the company's employees but also money. In addition to irregular payments, the company also takes advantage of the option of setting up standing payment orders for leasing and other installments directly from its own office. By utilizing electronic banking, the company does not feel the absence of a physical bank branch in Rajec.

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