Mylan is spending EUR 67m on a packaging plant in the Hungarian city of Komárom, National Economy Ministry state secretary Zsolt Becsey said at a press conference in Budapest .

“ needs such investments and such innovations that strengthen the Hungarian economy. Those do not destroy, but undisputedly build our country based on Hungarian small and medium-sized enterprises” - emphasized State Secretary for External Trade Relations of the Hungarian Government Zsolt Becsey at the investment announcement press conference on Thursday.

ambassador to Hungary Eleni Tsakopoulos said the fact had drawn USD 9bn in FDI from American investors since 1990 was a good sign of the country's ability to attract capital. 's geographic location, its good infrastructure and its well-educated, motivated and creative work force are a draw for US investors, she added.

“After conducting a broad search for a suitable facility with the potential to expand, the opportunity in Komárom turned out to be an ideal fit,” said Mylan chief operating officer Rajiv Malik. “Not long from now, we’ll have a high quality, efficient packaging operation up and running that will be able to support our dynamic business and the local economy."

Mylan Inc. ranks among the leading generic and specialty pharmaceutical companies in the world and provides products to customers in more than 140 countries and territories.

Hewlett-Packard (HP), the computer group, plans to create up to 700 new jobs at its Global Business Centre in Wroclaw over the next few years, as the facility assumes a key role in supporting decision-making processes at the group’s subsidiaries in Europe .

The Wroclaw centre, which was created exactly five years ago as the first SSC/BPO centre in the city, at present employs 1,800 staff. The decision to lift headcount to 2,000-2,500 is part of a plan, not only to expand capacity but also to introduce more advanced services. That is why HP is aiming to cast its net wider, attracting foreigners as well as Polish professionals.

The World Bank’s for the first time evaluated business conditions in 87 countries. The report “Investing Across Borders 2010” concluded that Central and Eastern Europe has seen the highest improvement in conditions for investors.

The report looked at issues such as the influence and bureaucracies of governments when conducting business in a country. For example the report found that setting up a business in can take as long as six months and in up to ninety-nine days or longer. While compared to and , where all necessary documentation can be completed in less than 2 weeks, and in and where a business can now be setup over the internet.

According to the study nine out of ten countries don’t allow foreigners to run a business without heavy restrictions.  Many governments require foreign investment approval, restricted foreign ownership and make it difficult to obtain simple permits.

The author of the study, Peter Kusek stated that, “ Eastern Europe has benefited greatly from the new laws imposed in the process of joining the European Union.” This has helped to improve the environment for conducting business in Central and Eastern Europe . Unfortunately even with these reforms, the region has experienced a loss of half of its foreign investment capital during last year, attributed mainly due to the challenging economic situation across Europe .

Predicting the future is obviously risky. But given the current volatility and uncertainty of the marketplace, it would be very safe to predict that financial institutions will be extremely thorough in reviewing your small business loan application.

Consequently, be prepared to provide the prospective lender with financial information to evaluate your qualifications for funding. And the best way to prepare is to first look at the process from the lender's perspective.

Most financial institutions require three consecutive year-end tax returns, financial statements and interim reports. Occasionally, exceptions will be made for younger companies if they have a fair share of unencumbered assets and a quantifiable market.

You will also need the following documents:

1. balance sheet
   
2. profit and loss statement
   
3. accounts receivable and payable aging
   
4. debt schedule
   
5. management's discussion or analysis of operations
   
6. projections for the coming 12 months personal and business tax returns

All of this information will be reviewed by the lender to determine available cash flow, trends in assets, liabilities, working capital, total debt and net worth. The lender will also want to know if the statements have been prepared and audited by a certified public accountant.

The lender will review your company's cash flow, history of profitability and related factors, including:

1. How well has the business been managed in the past?
   
2. How does your business measure up to industry norms?
   
3. How well have you managed your assets?
   
4. What are the projections for the future?
   
5. Are there sufficient funds to cover future debt service or interest payments?

If your financing need is to start a new business or to expand existing operations, the lender will want to review your business plan.

Unused and available bank credit lines or other credit facilities are also factors in the loan approval process. They reveal whether there is a sufficient reserve to buffer minor cash flow problems. For example, a lender will question whether those resources are sufficient to address a seasonal need for extra funds.

Beyond the numbers, intangibles are important, too. For example:

1. How long has your senior management been involved in the industry?
2. How well do they appear to understand the industry?
3. How long have they been with the company?
4. What are their reputations?
5. How much equity do they have in the company?
6. If financial problems arise, does your senior management team have the experience to cope?

Such questions are asked because unlike the stock market, past performance is often a good indicator of management's ability.

Lenders will also consider facilities and equipment. Are they adequate? Are repairs and overhauls handled internally? To what extent will capital expenditures be necessary to upgrade existing facilities and equipment?

If you plan to use your loan to renovate an existing building, the lender will want to know that you understand the costs and benefits of the construction and can demonstrate the need for additional space.

The real key is to convince the lender that you understand every aspect of the project and are prepared to answer any questions. For example, if you want to buy the building you currently lease, you should know all of the costs associated with ownership - real estate taxes, utilities, repairs and maintenance - and how they may differ from the lease payment. If you are interested in purchasing an existing business, you should be able to show that you have done extensive due diligence -- looking at the customer base, current and prospective competition, and prospects for the next several years.

References are also extremely important. A good credit history with trade suppliers and personal accounts can carry a great deal of weight and make the difference between a "yes" or "no" from the lender.

But what are your options if the prospects for a positive lender's decision based strictly on the "financials" look shaky? When that happens, consider pledging additional collateral or a larger down payment.

Since the success of a small business is contingent upon the owner's skills and commitment, a small business owner will almost always be required to pledge his or her personal guaranty as well as any personal assets available as collateral. In fact, a business owner should be prepared to contribute personal funds to any project for which they are seeking financing. Most lenders will insist on splitting project costs with the business owner. For a real estate purchase, your share could range from 10 to 30 percent. A new business should be prepared to contribute at least one-third of the start-up costs.

Having the necessary information packaged and readily available demonstrates your command of the financial side of the business as well as a sensitivity to the lender's requirements and business style. Remember that an honest exchange of information allows both parties to structure the best possible "deal" for each other's needs.

Source: bizbuysell

Debreceni Csoport Húsipari, a member of Central European holding of meat producers Carnibora, will acquire a stake of 97.3% in Kaiser Food Élelmiszer-ipari. Holding Carnibora is a member of investment group Penta.

The transaction completion is subject to approval by the Hungarian Antimonopoly Office. Kaiser controls two production plants in Mosonmagyarovár and Abda. The company employs 250 people and its revenues totalled HUF 5 bln (roughly EUR 18 mln) in 2009.