1.    The entrepreneur submits an application for credit approval based on guarantee of HAMAG to the bank (creditor).

2.    The bank (creditor) submits to HAMAG the Decision on the credit approval, an application for guarantee and documentation requested by   the specific guarantee programme.

3.    The Department for Financial Support via Guarantees processes the application for guarantee

4.    HAMAG makes the Decision on guarantee and informs the bank (creditor). In case of a positive Decision:

• the invoice for the guarantee fee is issued to the entrepreneur (pursuant to the guarantee programme stipulating the fee). Guarantee issuance fee is a one-off payment in the amount of 0,95% of the issued guarantee
• the entrepreneur concludes the credit agreement with the bank (creditor), conducts the security instruments for the credit repayment and pays the fee to HAMAG. The bank (creditor) submits the credit agreement and HAMAG concludes the guarantee agreement with the bank (creditor) and the entrepreneur. The entrepreneur provides the agreed collateral for possible default on payment under the approved guarantee, after which HAMAG issues the guarantee
• upon obtaining the guarantee, the bank (creditor) places the credit funds
• after the credit has been used, the bank (creditor) submits the documentation on the allocated credit usage to HAMAG for control and HAMAG submits the statement on the allocated credit usage to the bank (creditor).