KGF sigs a standard protocol with all Creditors. Therefore, there is no distinction between Creditors in terms of guarantee activities. Guarantee requests from Creditors are processed and concluded in the order they arrive.

SMEs can apply directly to the 40 KGF branch offices situated in 35 provinces for their guarantee requests for TTGV, TÜBİTAK, KOSGEB, Ministry of Science, Industry, and Technology, and Eximbank support and loans.

Requests coming from provinces without a KGF branch office are processed in the closest branch office in line with the branch areas of responsibility, which can be found on the KGF website. Once the request is processed by the relevant KGF branch, the process goes in the same way.

All guarantee requests are concluded centrally. Hence, the branches are not authorized to approve guarantee requests.

Each guarantee request is individually evaluated and concluded. The fact that the same business has previously approved guarantees (either equity- or Treasury-backed) does not mean that all its guarantee requests will result in approval.

KGF guarantees are linked to the Creditor who has made the guarantee application and the loan extended by that Creditor; they are processed together. If the business wishes to use a different Bank from the one already part of an approved guarantee request, a new guarantee application must be made through the new Bank.

In such a case, the Creditor must lodge a loan termination request on KOBIT and must upload in the mandatory documents section a signed Creditor letter indicating that the guarantee is null and void, and hence initiate the termination.

Within the general limits specified, a business can apply to KGF through more than one Creditor, either simultaneously or at different times, without the need for the termination of the current guarantee risk.

There is no lower limit for KGF guarantees..

KGF’s guarantee limits vary in relation to the type of support.
The upper limit for each SME for KGF equity-backed guarantees is 3 million TL.
The upper limit in letters of guarantee to be issued addressing TÜBİTAK, Ministry of Science, Industry, and Technology, KOSGEB, and TTGV is the same as the upper limit per SME in KGF equity-backed guarantees.
As regards Treasury-backed guarantees, the upper limit of guarantee for SMEs and exporting SMEs is 12,000,000 TL while it is 200,000,000 TL for non-SME beneficiaries and exporting non-SME beneficiaries.

In equity-backed guarantees with Banks, KGF charges an SME 400 TL for each request and 250 TL for guarantee allocation.
The guarantee commission rates KGF collects from SMEs are as follows:
• 1% of the guarantee amount in bid bonds and performance guarantees for undertaking services,
• 2% of the guarantee amount in guarantees to do with all other cash or non-cash loans.
For Treasury-backed guarantees, KGF collects a one-time commission fee of 0.03% (three per ten thousand) of the guarantee amount for each guarantee provision in the form of a single payment. There is no application fee.
The Bank cannot claim any other expenses than those it incurs for third-party activities (appraisals, insurance, etc.) and the commission (three per ten thousand) to be paid to KGF with respect to loans it is to extend under KGF guarantees.
In the event that loans are terminated prematurely the commission is not reimbursed.

KGF does not require any documents in addition to the documents required by the Bank for loan extension. In the event that the loan file submitted by the Bank misses any documents, KGF asks for the submission of the missing documents alone.

Part of KGF’s raison d’être is to promote entrepreneurship and to enable the access to finance of start-ups following due diligence.
No minimum period of activity for the enterprise is sought for applications.

While KGF starts assessing the applications on the day of the application, it might take KGF up to 7 work days to decide upon the application depending on the amount requested and the balance sheet review of the business.
Following the submission of all necessary documents by the Bank to the Portfolio Guarantee System, KGF decides upon the application in 2 work days at most.

KGF can act as a guarantor for cash and non-cash loans for both investments and capitalization.

There are different criteria taken into account in terms of tax and SSI debts in credit rating evaluations. In Treasury-backed guarantees, the beneficiary must not owe any overdue tax or SSI debts. The beneficiary must document, with a letter obtained at most 90 days prior to the use of the loan, that it does not owe overdue debts to the tax administration in accordance with Article 22/A of the Law on the Collection Procedures for Public Receivables dated 21/07/1953 and no. 6183 and to the Social Security Institution in accordance with paragraph 6 of Article 90 of the Social Security and General Health Insurance Law dated 31/05/2006 and no. 5510, or that, in the event that it does owe such debts, it has restructured such debts and the restructuring has not been breached. Failing that, provided that such debts do not exceed 20% of the loan amount, it is required that first these debts are repaid from the loan provided under KGF guarantee.  
However, KGF equity-backed guarantees, tax and SSI debts are evaluated in accordance with their weight in the balance sheet.

Such SMEs can benefit from KGF guarantees provided that they can document that they do not have any debts subject to legal proceeding and that they paid their bounced cheques and protested notes payable, if any.

In line with its mission, KGF provides guarantees for SMEs and non-SME businesses that are creditworthy but lack sufficient collateral. However, in the event that KGF thinks there might be unforeseeable risks, KGF might request and accept collateral in the form of movable and immovable property that the banks do not consider to be collateral. KGF accepts a variety of collateral so that SMEs can have ease of access to finance such as pledges for enterprises, machinery, vehicles, brands, mining licences, undeveloped land divided into shares, farmlands, OSB (organized industrial zone) land plots without deed, cooperative shares, undue receivable transfers, and even cattle/small cattle, insurance policies, and receivable insurance policies.

A business can use the KGF-approved guarantee limit in sections or in whole at once within the designated time period. Moreover, a business can also apply gradually for smaller amounts in time rather than apply at once for the maximum limit that can be allocated for the business by KGF.

A business can benefit from KGF guarantee if it makes a new guarantee request through the bank for the amount of the repayments completed.