Archive of Journal - Financing

Financing – scientific magazine for economy

ISSUE 2021, No. 1, Article 4, Year of publication: 12, March, 2021
A loan as a source for funding a company in business practice of the Republic of Srpska

AUTHOR

Nataša Atlagić*

*Ministry of Finance of the Republic of Srpska

ABSTRACT

ARTICLE INFO

The development of a company and the growth of its business are influenced by many factors, including access to finance. The aim of the research is to examine the conditions for concluding a loan contract in operations with abroad, both the legal transactions in which a domestic company takes a loan, and in which a domestic company grants a loan as a lender. The following scientific research methods
The results of the analysis indicate that many regulations are important for concluding a loan contract in operations with abroad, such as laws governing contract and torts, foreign exchange operations, companies, default interest and taxes. In the Republic of Srpska, the approach of a phased process of liberalization of capital movements was applied, and it is regulated that resident is prohibited to grant a loan to a non-resident with a maturity of less than one year and is obliged to obtain a surety instruments safeguarding security of the credit transaction. Before making a decision on taking or granting a loan, a company should perform an analysis of its financial position and power, and how that legal transaction would affect its financial stability.

Keywords: company, funding, loan.

DOI: 10.7251/FIN2101047A

Corresponding author:
natasa@atlagic.com