In the short-term loans include loans that are usually granted to finance the current needs for working premises and means and, above all, companies for trade in goods and the customs clearance of inventories, and other institutions. The deadline for the use of these credits is one year.
One of the oldest banking businesses of investing are escount loan. Its use is particularly in payment traffic of goods from other countries.
How it works, the eskont credit.
Bank buys from its clients a claim against a third party
This receivable is purchased before the deadline their maturity because it is so certain commercial forms.
The duty of the banks in the new case is that from the moment of purchase until maturity reject interest and costs incurred eskont loans. In this case, the interest may be (eskont or discount) and costs include the eskont commissions incurred in issuing eskont loans.
In eskont loans used the following securities (promissory notes, warrants, checks etc.).
Banks still buying only safe promissory notes that can be quickly sold and are sold to the central bank, or sometimes another bank.
In this case we can use the term re-eskonting – sell securities.
How is calculated eskont loan?
For example, we’ll take Promissory note.
PN Promissory note nominal value
E Eskont the amount of interest
ES Eskont sum (sum of Promissory note for the amount of eskont)
IK Interest key (the numerical value which is obtained for 360 days a year and the eskont rate)
IN Interest No. is 100
We take one year, days of the year, 360 days.
TP The time period of maturity promissory notes
Formula for calculating Eskont loan
E=PNxTPxES / 360xIN