Digital Business Loan

More information

• General Information

  Is my company eligible to apply for this product?

  To apply, your company must: 

  • Be a small or medium-sized enterprise (SME) registered and actively operating in Cyprus 
  • Have at least one year of financial results available demonstrating business activity and financial stability 
  • Ensure that all company directors are active business subscribers in 1bank and provide their approval as part of the application process 

  Directors currently using a personal subscription can switch to a business subscription by contacting the company's responsible unit. 

   

  Who can submit an application on behalf of the company? 

  Any authorised business user of the company can initiate and submit the application. Before the application can proceed, approval from all company directors is required. 

   

  I have a business subscription for more than one company. Can I apply for each of them? 

  Yes. You can submit applications for multiple companies at the same time. However, each company can have only one pending application at any given time.

  
  How can I apply for a Digital Business Loan? 

  You can submit your application through Internet Banking using your business subscription. 

  
  How quickly will I receive a response? 

  You will receive a response within 24 hours of submitting your application. 

  
  How can I track the progress of my application? 

  You will receive real-time updates via SMS and Internet Banking, allowing you to track your application's progress every step of the way.

  
  What supporting documents do I need to apply? 

  You will need to upload an invoice or quotation supporting your financing request. 

  If the financial statements already submitted to the Bank are older than 18 months, you will also need to upload audited financial statements or management financial statements covering a full 12-month financial period within the last 18 months. 

  • If these statements are not available, you can download the Simplified Financial Statements(Income Statement and Balance Sheet) during the application process, have them completed and signed by the company's accountant and one director, and then upload them as part of your application. 

   

  My company is not a customer of the Bank. Can I still apply? 

  Yes. Before applying, your company must gather the required documentation listed on the company account opening application page and complete the Bank of Cyprus onboarding process. 

  This includes submitting a digital application to open either a business sight account or a savings account. If no account is required, the documents may be submitted at any Bank of Cyprus branch. 

  Once onboarding has been completed, all company directors must be linked to the company in 1bank as business users before starting a Digital Business Loan application. 

  If your application is approved, opening a business account will help manage daily operations and facilitate the repayment of loan instalments.

  
  What is the Annual Percentage Rate (APR)? 

  The Annual Percentage Rate (APR) represents the total cost of financing to the customer. 

  In general it includes all costs payable by the customer to the Bank or third parties, such as government charges, insurance costs and valuation expenses. 

  APR is one of the most useful tools for comparing the true cost of financing, as it includes all financing-related charges and enables comparison between different financing products and providers. 

  
  What happens if there is an earlier repayment of the facility? 

  In the case of early settlements or payments before the agreed repayment schedule, the Bank may charge fees depending on the type of interest rate applied and the amount repaid earlier. 

  
  How is my application assessed and what does automated decision-making mean? 

  Digital Business Loan applications are assessed electronically based on the company's creditworthiness, repayment capacity and the Bank's applicable credit policy. 

  Approval or rejection of an application is based on the processing of the company's financial information and the credit information of its directors. The decision is made using automated means only, including profiling, without human involvement and only after obtaining the consent of all company directors. 

  The loan application journey includes the use of artificial intelligence (AI) technology to support the processing and assessment of information provided by you. AI-generated outputs are used as part of the process, subject to the Bank’s governance, oversight, and applicable legal and regulatory requirements.

  Profiling under this procedure involves the automated processing of the company’s financial data to analyze, evaluate and predict your creditworthiness and ability to repay the facility.

  The Bank uses only the information necessary to assess the company's creditworthiness and repayment ability in order to make responsible, fair and informed lending decisions. 

  The Bank will use information that provided, as well as information derived from the Bank’s internal sources (that is conduct on other accounts / facilities / guarantees / securities, payment arrears on other accounts / facilities, judgement debts, and updates for anti-money laundering purposes) and external sources (that is insolvency records, i.e. arrears, non-performing facilities and judgement debts at other banks from Artemis Credit Bureau). 

  In certain cases, an application may be automatically referred to the Bank for further assessment by an authorised officer. 

  
  Can I challenge an automated decision if my application is rejected? 

  Yes. The company may request a review of the decision by contacting its responsible unit. 

  
  Can the company withdraw its application at any time? 

  Yes. The company may withdraw its application at any stage. 

  If application information has already been entered, the company may choose to save it and continue later or discard the application. If the application is discarded, the information entered will not be saved. 

  Applications that remain inactive for 15 days are automatically discarded. 

  If a decision has already been reached, the company may still withdraw its application at any time before signing the financing agreements, provided the decision remains valid within the period stated in the relevant approval notification. 

  The company may also withdraw from the financing agreement within a specified period and subject to the applicable terms and conditions. Further information will be included in the approval notification and financing agreement. 

• Hire Purchase

  What can the Hire Purchase Digital Business Loan be used for?

  You can submit a Hire Purchase application of a Digital Business Loan to acquire assets for the company. 

  H.P. Car financing solutions are available for both new and used business vehicles. A Green Car Hire Purchase from Bank of Cyprus supports the purchase of electric and hybrid vehicles, promoting more sustainable mobility choices. Green Car Hire Purchase is available for brand new electric or plug-in hybrid or hybrid car with emissions <=50g CO2/km.

  With various interest rate options, you can spread the cost of your car over time and manage your budget more effectively.

  H.P Equipment financing solutions are available for the purchase of:

  • Medical Equipment and Diagnostic Equipment
  • Restaurant and retail equipment
  • Commercial refrigeration equipment
  • Airport equipment
  • Electrical appliances
  • Office equipment
  • Beauty Salon equipment
  • Printing machinery
  • Computer hardware
  • Agricultural and construction machinery not registered with the Road Transport Department

  
  Are there any fees associated with the application? 

  Hire Purchase for Cars:
  No initial fees apply.

  Hire Purchase for Professional Equipment"
  The following fees are payable only after the loan has been granted. 

  Arrangement Fee: An Arrangement Fee of 1% of the approved loan amount applies, with a minimum fee of €25. This fee covers the Bank's administrative costs relating to the assessment, preparation and processing of the application. 

  Documentation Preparation Fee: Documentation Preparation Fees are €50 for small enterprises and €150 for medium-sized enterprises. These fees cover the preparation of the legal documentation related to the approved financing. 

  For more information, please refer to the Bank's Table of Commissions and Charges. 
  
  

  What interest rates apply?

  For Car hire purchase facilities, a choice between a  fixed or variable interest rate is available. Variable rates consist of the European Central Bank Base Rate plus a margin. 

  Professional Equipment hire purchase facilities are offered with a variable interest rate consisting of  the European Central Bank Base Rate plus a margin. 

  When a facility is provided at a fixed interest rate, the instalments remain constant and will not change even if interest rates rise. However, whilst protection against increases in rates is gained, there is no benefit if rates fall.

  When a facility is provided at a variable interest rate, changes in the base rate may increase or decrease the applicable total interest rate at any time. Any change to the total interest rate will also affect the monthly instalment amount.
  
  

  How will the seller be paid?

  The Bank will deposit the amount of the hire purchase facility directly into the seller’s account. 
  
  

  How does Hire Purchase work?

  Hire Purchase financing is provided through a Hire Purchase Agreement.

  • When application is approved the asset ownership is held jointly by the Bank and the company, and the seller is paid 
  • When the financing amount is fully repaid, the asset ownership is transferred to the company after the amount of €50 (option fee) is paid to the Bank. The right to purchase is incorporated in the last installment

  
  Is a contribution required?
  

  • For New Cars: 15% of the purchase price
  • For Used Cars: 20% of the purchase price
  • For Professional equipment or other vehicles: 30% of the purchase price
• Working Capital and Capital Expenditure

  What can the Digital Business Loan be used for?

  You can apply for a Digital Business Loan to support a range of business needs.

  • Working Capital is designed to provide your company with funds for everyday operational expenses, helping maintain liquidity and ensuring the smooth running of daily business activities.
  • Capital Expenditure (CAPEX) funding is available if you intend to purchase new equipment, expand your business, or carry out energy efficiency upgrades. This option offers flexibility, enabling you to tailor the loan to your business’s specific needs—whether for routine expenditures or long-term investment in growth.

   

  Are there any fees associated with the application? 

  Yes. These fees are payable only after the loan has been granted. 

  Arrangement Fee: An Arrangement Fee of 1% of the approved loan amount applies, with a minimum fee of €25. This fee covers the Bank's administrative costs relating to the assessment, preparation and processing of the application. 

  Documentation Preparation Fee: Documentation Preparation Fees are €50 for small enterprises and €150 for medium-sized enterprises. These fees cover the preparation of the legal documentation related to the approved financing. 

  For more information, please refer to the Bank's Table of Commissions and Charges. 

   

  What interest rates apply?

  Loans for working capital and Capital Expenditure are offered with a variable interest rate consisting of the 6-month Euribor (base rate) plus a margin. 

  Changes in the base rate may increase or decrease the applicable total interest rate at any time. Any change to the total interest rate will also affect the monthly instalment amount. 

   

  How quickly will the loan funds become available? 

  If the application is approved, the loan amount will be available on the next business day following the signing of the financing documentation.