A type of banking service for financing economic entities. Under this service, the bank recognizes the rights of economic entities to claim payment for goods received from payers, work performed and services rendered, with the right of recourse.
| Seq. No. | Terms | Description |
| 1 | Definition of factoring | A type of banking service for financing economic entities. Under this service, the bank recognizes the rights of economic entities to claim payment for goods received from payers, work performed and services rendered, with the right of recourse. |
| 2 | Borrowers | Legal entities and sole proprietors without legal status |
| 3 | Purpose of factoring | Purchase of deferred customer receivables |
| 4 | Loan currency | Issued in local currency or USD |
| 5 | Loan term | According to the terms of the contract: In local currency - up to 90 days; In foreign currency - up to 180 days. |
| 6 | Loan amount | The contract amount is determined based on the client's creditworthiness. |
| 7 | Factoring fee (discount) | In local currency - 10 per cent; In foreign currency - 7 per cent. |
| 8 | Collateral | Not required |
| 9 | Circumstances in which the provision of credit is prohibited | - The client has a negative credit history (score of 200 or less); - The client has overdue credit debts or debts on register No. 2; - Companies with illiquid balance sheets or regular losses are not eligible for factoring activities (exceptions may be granted to significant clients of the Bank based on a positive decision of the Central Credit Committee); - In accordance with the requirements for budgetary organizations; - For debts of individuals; - For debts of companies that have been declared insolvent; - For unprofitable companies; - For the financing of capital investments; - For consignment export contracts; - For compensation and barter agreements; - For contracts providing for staggered or instalment payments; - For sales contracts allowing the buyer to return goods within the period specified in the contract and after the provision of the sales service. |
| 10 | Factoring arrangement | Based on the sales contract between the buyer and the seller, up to 90% of the contract amount is transferred to the seller's bank account. |
| 11 | Required documents for factoring arrangement | 1) document confirming acceptance of sold goods and services (invoice, deeds, etc.); 2) application; 3) founding documents (certificate, charter, manager's order, accountant's order, decision of founders on obtaining credit, certificate and passport for individual entrepreneurs); 4) financial statements (form 1 and form 2). Information on the submission of these statements to the tax authorities must be provided; the reports must be approved by the client. An additional breakdown of fixed assets, receivables and payables may be requested if necessary; 5) account turnover report for the client's accounts (a/c 202...) in all banks for the last 12 months, including register No. 2; 6) sales contract or import contract concluded between the buyer and the seller with deferred payment terms. |
| 12 | Source of finance | Bank's own funds. |
