Fully agree with you David and it is quite normal to be so. Who would give credit to a company that started its activity yesterday?
The company must prove that it had economic activity and has profit. Banks simply can't waste their money on unperformant credits, therefore your company must prove performance. Actually banks give loans of over 150k only to companies with a 5 years plus of activity and excellent accounting records. Also when you ask the bank to lend you money, you have to prove that if you put those money into a property, the company will benefit from it.
The credits for companies have a different regime than those for private persons.
Quote:
Originally Posted by David howe
If you were innocently or maliciously deceived in to being told you must set up a company to buy/own property in Romania you currently have problems. These must be addressed as a matter of urgency if you are seeking to get finance on your purchase.
Finance to companies for purchase is only available where the company has been in existance for 1-2 years and can show income that will substantiate the loan sought. This is not applicable to shelf companies and potential purchasors must now take remedial action as time is of the essence.
David Howe LLB. LLM.
INVESTMENT ROMANIA - Investment in Romanaia, Property management, Due diligence, Renting in Romania |