The MOBIL IMM Guarantee. What SMEs Need to Know and When Legal Assistance Can Be Useful

In a context in which an increasing number of companies are seeking funding to support their business activities, verifying the eligibility requirements and the obligations undertaken before accessing financing has become essential.

A new financial guarantee instrument funded from the National Credit Guarantee Fund for Small and Medium-Sized Enterprises’ own resources, aimed at facilitating SMEs’ access to working capital financing for transport and fuel expenses, is expected to be launched by the National Credit Guarantee Fund for Small and Medium-Sized Enterprises (FNGCIMM). Through the MOBIL IMM Guarantee, small and medium-sized enterprises will be able to access financing of up to RON 1,000,000.

In this context, the Romanian Law Firm Pavel, Mărgărit and Associates can provide legal assistance in dealings with banks and FNGCIMM, including the preparation and review of the required documentation, the analysis and negotiation of SME loan agreements and guarantee agreements, as well as throughout the relationship with the financing institution and FNGCIMM. A commercial law attorney can also provide relevant legal assistance in reviewing the guarantees required by the bank, the financing costs and the obligations undertaken by the company throughout the entire term of the financing.

Commercial Law Attorney. How Documentation-Related Delays and Obstacles Can Be Avoided

The estimated approval period is approximately 24 hours from the submission of the complete documentation. In order to avoid potential delays or obstacles, companies may seek the assistance of a commercial law attorney, who can review the required documentation, analyse the applicable conditions and identify, at an early stage, any inconsistencies or risks that could affect the approval process.

Through the MOBIL IMM Guarantee, small and medium-sized enterprises will be able to access financing of up to RON 1,000,000, benefiting from guarantees covering up to 80% of the financing amount. The guarantee period will be 36 months, with a 0% guarantee fee for the first six months and a 2.65% guarantee fee for the remaining guarantee period. For financing of up to RON 600,000, no additional collateral will be required. In addition to the 80% guarantee coverage and the maximum financing amount, the guarantee scheme will include a number of specific features applicable to the financing.

The product will also be available to eligible SMEs operating in all sectors of activity, provided that the financing is used to cover transport-related expenses, including the purchase of fuel based on invoices or through fleet cards.

Banking Law Attorney. What Should the File for the MOBIL IMM Guarantee Contain?

Small and medium-sized enterprises interested in obtaining financing through the MOBIL IMM Guarantee should pay particular attention to their financial position and repayment capacity. During the assessment process, the company’s financial and accounting documents, the level of its payment obligations, the existence of other loans or leasing agreements, as well as its repayment history may be relevant.

Although FNGCIMM has not expressly presented these elements as mandatory conditions for accessing the MOBIL IMM Guarantee, companies interested in obtaining financing should assess in advance their payment capacity, financial statements, level of indebtedness and credit history.

Payment capacity refers to the extent to which a company is able to meet its repayment obligations without adversely affecting its ongoing business activities. The company’s balance sheet may be used to assess its financial stability, financial performance and profitability.

On the other hand, the level of indebtedness reflects the company’s existing financial obligations, such as other loans, leasing agreements or outstanding debts, while its credit history may indicate how the company has complied with its obligations towards creditors to date.

In order to prevent potential legal risks, a banking law attorney can provide legal assistance from the stage of preparing the required documentation through to the review and negotiation of the loan agreement. More specifically, the attorney can help prevent documentation-related delays or obstacles, identify the guarantees or collateral required by the bank, and review contractual clauses that could become problematic

Bank Lending Attorney. Risks for a Company When Accessing a Bank Loan

Obtaining a bank loan without first consulting a banking law attorney may expose a company to legal risks that go beyond the mere obligation to repay the financing. Such risks may range from clauses concerning early acceleration of the loan and default interest to additional costs or security interests over important company assets.

Pursuant to Article 120 of Government Emergency Ordinance No. 99/2006, loan agreements and guarantee agreements concluded by credit institutions constitute enforceable instruments. Therefore, if the company fails to fulfil its payment obligations, enforcement proceedings may be initiated. For this reason, a legal review of the agreement before signing can help the company identify, at an early stage, contractual provisions that may give rise to significant legal or financial risks.

“Before accessing financing, a company must understand not only the cost of the loan, but also the legal consequences of the obligations it undertakes,” stated Dr. Radu Pavel, Managing Partner of the Romanian Law Firm Pavel, Mărgărit and Associates.

A bank lending attorney can identify clauses concerning early acceleration, security interests or additional costs which, in the absence of a prior legal review, may give rise to significant difficulties during the term of the loan.

Government Emergency Ordinance No. 99/2006 on credit institutions and capital adequacy regulates the establishment, operation, supervision and liquidation of credit institutions, setting out requirements concerning capital adequacy and professional secrecy. The legislation also contains provisions relevant to loan agreements and guarantees concluded with credit institutions.

Government Emergency Ordinance No. 77/2014 on national procedures in the field of State aid, as well as on amending and supplementing Competition Law No. 21/1996, establishes the national procedural framework for the application of European Union State aid rules, aligning national legislation with the relevant provisions of EU law.

Accessing a loan following company incorporation or LLC incorporation may represent a solution for supporting initial investments. In this case as well, a bank lending attorney can review the financing conditions, the documentation required by the bank, the guarantees or security interests, as well as the obligations undertaken under the loan agreement.

BANK LENDING ATTORNEY. HOW CAN A LAWYER ASSIST A COMPANY IN ACCESSING A LOAN?

A bank lending attorney can review the loan agreement in order to identify contractual provisions that may give rise to legal risks. The attorney may subsequently assist in negotiating the terms and conditions of the agreement, explain the costs, financial obligations and technical terms to the company, and provide legal support in the event of disputes or disagreements with the bank.

A banking law attorney can also provide assistance in ensuring compliance with the contractual obligations undertaken by the company.

Company Incorporation and Accessing Credit: How a Tax Law Attorney Can Assist Newly Established Companies

A tax law attorney can assist entrepreneurs from the early stages of online company incorporation, company incorporation, company formation or LLC incorporation, by advising on the appropriate legal form, drafting corporate documents and reviewing the applicable legal requirements. In the case of newly established companies, a banking law attorney can also assist with structuring the share capital and reviewing the business plan from a legal perspective.

Subsequently, where a newly incorporated company intends to access financing, a tax law attorney can review the eligibility requirements, the documentation requested by the bank, the SME loan agreement and the guarantees or security interests required for the financing.

Both newly established companies and existing businesses may benefit from legal assistance. In the case of existing companies, the attorney may assist with managing outstanding liabilities, addressing issues in the company’s legal history and implementing corporate reorganisations in order to meet the requirements imposed by the financing institution.

TAX LAW ATTORNEY. LEGAL ASSISTANCE FOR COMPANIES FACING PAYMENT DIFFICULTIES

When a company begins to experience payment difficulties, obtaining legal assistance is advisable. An insolvency attorney can assist the company by identifying legal solutions aimed at protecting the business and, where possible, avoiding bankruptcy.

When a company faces financial difficulties, a lawyer can provide assistance primarily in implementing legal procedures for the prevention of insolvency, negotiating and rescheduling debts, including by extending payment deadlines, preparing a restructuring plan for outstanding obligations and, where necessary, representing and protecting the company’s interests before the courts.

Company Insolvency: How an Insolvency and Restructuring Lawyer Can Assist

Insolvency occurs when a company is no longer able to pay its outstanding debts and becomes subject to the supervision of a judicial administrator or judicial liquidator, for the purpose of restructuring or liquidation.

Insolvency prevention and insolvency proceedings are governed by Law No. 85/2014, which aims, where possible, to preserve and restructure the company, while liquidation may follow if restructuring is no longer viable.

An insolvency lawyer can provide legal assistance with: negotiations with banks, suppliers, ANAF and other creditors; reviewing the company’s legal position and outstanding liabilities; preparing and filing the application for the opening of insolvency proceedings where the application is submitted by the debtor; representing the company before the syndic judge; reviewing claims filed by creditors and submitting challenges where appropriate.

An insolvency lawyer can assess the available options and present the legal solutions applicable to the company’s particular circumstances, indicating the most appropriate course of action.

In conclusion, legal advice may be useful throughout the entire lifecycle of a company, from company incorporation and the structuring of corporate relationships to accessing financing, including through the MOBIL IMM Guarantee, negotiating SME loan agreements and managing potential financial difficulties.

By reviewing the documentation, analysing financing conditions, identifying legal risks and assessing the guarantees or security interests undertaken, a lawyer can help prevent delays or obstacles and protect the company’s interests.

If repayment issues or financial difficulties arise, the lawyer can assess restructuring or refinancing solutions and, where appropriate, insolvency prevention procedures or insolvency proceedings, in order to identify the most suitable legal solution.

The Romanian Law Firm Pavel, Mărgărit and Associates is one of the leading law firms in Romania, providing legal services of the highest quality. Its clients include major multinational and Romanian companies. The firm’s successful track record has earned international recognition from some of the most prestigious legal directories and specialist publications. The law firm ranked 3rd among Romanian law firms in the Legal 500 ranking. The firm is also internationally recognised by the IFLR1000 Financial and Corporate guide. It is the only Romanian law firm recommended by the London-based international directory Global Law Experts in the Dispute Resolution practice area. Further information about Pavel, Mărgărit and Associates is available at www.avocatpavel.com