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What funds can be used to get a preferential loan?

What funds can be used to get a preferential loan?

 

Although a company that plans and expands the rehabilitation process does not receive a loan, it has to develop a business plan at a certain time and, in many cases, raise loans, regardless of whether it has the money or not.

It is necessary to raise funds for the purchase of equipment and construction without prejudice to working capital. Credit should lead to development. If a company applies to any bank, at best it can attract business loans at 15-24 percent. These loans, originated from the internal resources of banks, usually do not have a grace period.

State support funds for the development of entrepreneurship are allocated on preferential terms for business development in Azerbaijan.

 

 

What are these Funds:

 

Entrepreneurship Development Fund (EDF), Investment Promotion Fund, State Fund for the Development of Information Technologies, Agency for Agrarian Credit and Development (AACD)

 

 

Benefits of a loan from the Enterprise Development Fund

 

The Entrepreneurship Development Fund is the fund with the largest financial resources, credit resources and portfolio in the country. The Entrepreneurship Development Fund provides soft loans for business projects with a service life of 3-10 years in manufacturing, processing and other specific areas with an annual payment of 5 percent and a grace period of 18-60 months.

Remember that the Entrepreneurship Development Fund does not provide concessional loans to enterprises in the service and trade sectors. The loan is issued through banks.

 

Investment promotion benefits

 

Investment promotion stimulates economic development. True, this Fund does not lend, but gives big discounts for companies and entrepreneurs. In addition, a project that stimulates investments, being exempted from paying state duties (at least 15%) and VAT (18%) at the Customs, and from property and land taxes when carrying out internal activities, acquires the right to a 7-year grace period. The right to reward applies only to new equipment and technology imported from foreign countries.

 

Eligibility for Mortgage and Guarantee Fund Loans

 

The Mortgage and Guarantee Fund provides state-guaranteed subsidized loans to projects with an annual repayment fee of less than 5 million manats and for a period of up to 5 years with an annual payment of 7-9%. However, the Fund also provides concessional soft loans to service and trade enterprises. In this case, a grace period of 1-2 years is determined only upon receipt of fixed assets. Projects aimed at replenishing working capital and purchasing commercial goods do not have a grace period.

 

Note: 10 percent of the minimum amount of 10 percent established by the state for each region and sector of the economy must be paid through a bank or confirmed on the basis of an audit certificate. Otherwise, the project investments (investments) will not be accepted for execution for reward.

 

These funds usually provide concessional and subsidized loans to operating companies. However, business plans must be designed to meet the minimum requirements so that they can be accepted and reviewed. However, each fund has minimum requirements and a standard for drawing up a business plan.

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Consulting company “SME” was founded by Doctor of Economics and lawyer Namazov Ilgar in 1990.

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Rimma Zeynalova

Chief legal lawyer

Rimma holds a master’s degree in law from the Moscow State Industrial University, which she obtained in 2017. With over 7 years of experience in the legal field, Rimma specializes in corporate law, commercial law, dispute resolution, and legal consultations in tax and labor law. She has extensive experience in client work, negotiations, and representing company interests in court.

Subhan Namazov

Founder and director of the company

Subhan has many years of experience in business management and development. He holds a master’s degree in management from Western University of Azerbaijan.
His specialization includes corporate law, where he helps companies establish a legal foundation for effective management and growth. In tax law, Subhan ensures the optimization of tax strategies and compliance with legislation, facilitating successful business financial planning. In financial and banking law, he provides consulting on legal aspects of financing and banking operations, which strengthens the financial stability of the company’s clients and partners.
With his expert support in these areas, Subhan successfully helps companies achieve their goals by solving complex legal and managerial tasks.

Panfyorova Sofya

Accountant - specialist

She obtained a bachelor’s degree in world economics from the Azerbaijan State University of Economics. Sofya has experience in accounting and specializes in maintaining records, preparing tax reports, analyzing financial data, and drafting budgets. Her professional practice includes client interaction, financial audits, and ensuring compliance with tax laws.

Yelena Ismailova

Lead human resources accountant

She obtained a bachelor’s degree in Finance and Credit from the Azerbaijan State University of Economics in 2006.
Yelena has more than 15 years of experience in accounting and HR administration. She is skilled in payroll accounting, HR documentation preparation, personnel calculations, and ensuring compliance with labor laws. Her specialization includes drafting employment contracts, calculating leave and benefits, maintaining time records, and liaising with regulatory authorities.

Ismail Ismailov

Client manager

Ismail has experience in client management and support. He obtained a bachelor’s degree from the Academy of Public Administration under the President of the Republic of Azerbaijan.
Ismail specializes in identifying and attracting new clients, building long-term relationships with corporate partners, and developing and implementing strategies to improve client experience. His skills include negotiations, contract conclusion, and market data analysis to enhance customer service quality.

Gulustan Isaeva

Junior lawyer

Gulustan graduated with a bachelor’s degree in law from Baku State University in 2024.
Gulustan specializes in preparing legal documents, conducting legal research, organizing meetings, and supporting transactions. She is skilled in business correspondence, client consultations, and assisting the chief legal officer in corporate and commercial law matters.

Nazrin Hajiyeva

Director’s assistant

Nazrin obtained a bachelor’s degree in Accounting and Auditing from the Azerbaijan State University of Economics in 2018.
Nazrin has over 5 years of experience in administrative support. She specializes in coordinating work schedules, organizing meetings and events, handling business correspondence, and preparing reports and documentation. Nazrin possesses excellent project management and interpersonal communication skills, which help her effectively collaborate with employees and clients.

Gunel Bayramzade

Business Partner and Executive Director.

Gunel Bayramzade holds a Bachelor’s degree in English from the Azerbaijan University of Languages. With extensive leadership experience, Gunel Bayramzade serves as the Executive Director and Business Partner at SME. Known for her strategic vision and commitment to improving operational efficiency, Gunel Bayramzade has played a key role in shaping the company’s direction and driving its growth. Her focus on fostering innovation and creating a dynamic work environment has helped SME achieve significant success. Through her keen insight into identifying opportunities and dedication to talent development, Gunel Bayramzade ensures that each team member contributes meaningfully to the company’s success. She strives to maintain a forward-thinking approach while achieving both short-term and long-term goals.

Jafar Alizade

Chief financial director

Jafar received a master’s degree in auditing from the Azerbaijan State University of Economics in 2009. Jafar Alizade has over 15 years of experience in financial management and tax matters. He specializes in budget management, financial analysis, investment planning, and tax expense optimization. Jafar has extensive experience in developing and implementing financial strategies to improve company profitability and sustainable growth, as well as in tax accounting and planning. He is responsible for preparing tax reports, optimizing tax obligations, and interacting with tax authorities. Jafar possesses in-depth knowledge of Azerbaijani law and international tax agreements, allowing him to successfully advise clients on taxation matters.

Vugar Abdullayev

Chief accountant

Vugar Abdullayev has over 14 years of experience in accounting. He possesses deep knowledge in financial accounting, tax planning, auditing, and budgeting. He specializes in preparing financial statements, managing tax risks, controlling cash flows, and ensuring regulatory compliance.

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