Loan Application in Cyprus
Loan Application in CyprusUpdated on Friday 09th October 2015
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Obtaining a corporate loan in Cyprus
Cyprus has a very friendly legislation for foreign investments which is why it attracts many entrepreneurs on a yearly basis. However, some of them will need financing to start a business in Cyprus, which is why Government and its institutions have put in place several mechanisms for corporate loans. All financial institutions granting business loans are carefully supervised by the Cypriot National Bank which imposes certain regulations referring to the collaterals companies can guarantee with when filing a loan application. Among the ways a Cypriot company can obtain a loan are:
- - bank funding,
- - commercial real estate loans,
- - Government guaranteed loans.
For information about the best way to obtain corporate loans you can ask for the legal advice of our Cypriot attorneys.
Regulations for obtaining a business loan in Cyprus
The Cypriot legislation on loans, which is called the Lending and Secured Finance Act, is the main regulatory framework applying to those trying to obtain financing for their companies. Cypriot companies must fulfill certain requirements in order to apply for a loan. In order to apply for a loan a company must:
- - obtain the consent of Cypriot managers and the approval of the shareholders,
- - pay a stamp duty,
- - companies can guarantee with any kind or class of property.
Cypriot companies can also use their shares as a security when filing a loan application. Securities in case of private companies are usually under the form of pledges and are subject to the Cypriot Contract Law. The pledge must be in writing and must be signed by the pledger and witnessed by two persons. Our lawyers in Cyprus can offer you more information about loan applications for private companies.
State guaranteed loans in Cyprus
The Government has enabled many incentives for foreign investors among which guaranteed loans is one of these options. Cypriot companies can contract one of the following loans:
- - the Small Business Administration loan,
- - the 504 Loan Program,
- - the 7a Loan Program,
- - the Express - Small Revolving Line of Credit.
For complete information about governmental loans and eligibility criteria, please contact our law firm in Cyprus. You can also refer to our lawyers if you want to start a company in Cyprus.