International factoring

Armswissbank isthe first financial institution in the region to become a member of Factors Chain International (FCI) - an association of leading factoring companies, offering international factoring services in approximately 90 countries through 400 members.

The process of international factoring has the same principals as the domestic factoring, with the difference that the buyer or the seller is an Armenian resident legal entity, and the international partner is a non-resident legal entity.

The factoring limit setting body is guided by both objective and subjective factors when establishing the limit.

Objective factors

Client’s experience, history of cooperation with the factoring partner, financial statements, accounts’ turnover, volume of potential transactions, credit history, willingness of the Bank’s partner organization to provide a guarantee for importer, etc.

Subjective factors

Client's activity’s compliance with the Bank's policies, transparency of client’s business, quality of management, further cooperation perspectives, etc.

ARMSWISSBANK offers its clients the following types of international factoring:

The exporter receives financing up to 80% of the invoice amount without providing a collateral or other guarantee and receives the remaining 20% settlement amount less the accumulated interest on the payment day. In case the buyer doesn’t make payment, the Bank’s partner organization (a member of FCI) makes the payment instead.

In an export factoring transaction the exporter can receive reliable information about his existing or potential international partners’ creditworthiness through the Bank. The export factoring can be performed both on recourse and non-recourse bases.

MAIN CONDITIONS*
Condition Export regression factoring Non-regression export factoring
Purpose of Financing Factoring financing does not imply targeted use, the client can use the financing at his / her discretion
Providing method Cash/Non cash
Minimum and maximum amount Depending on the guarantee limit approved by the Importer's bank
Minimum and Maximum Term As a rule up to 120 days
Grace period By the end of deadline
Repayment schedule of the principal One-time by the end of deadline
Interest repayment schedule At the end of deadline
Nominal interest rate (calculated on the amount of financing AMD from 11-14%
USD from 7.5-9.5%
EUR from 7-9%
Amount of financing Up to 80% of invoice amount
Limit approval fee AMD 25,000
Full service package (non-regression export factoring) commission From 0.1% of invoice amount
Review of current limit AMD 10,000
Invoice processing fee AMD 9,000
Amount of funding Up to 80% of invoice amount
Security Importer's Bank (FCI Member) Guarantee, Client / Provider / Company Guarantee, Client / Provider / Company Owner Guarantees, Personal Guarantees for Managers, or other security acceptable to the Bank Importer Bank Guarantee (FCI member)
In case of late payment of principal amount payable, daily penalty for overdue amount 0.1%
In case of late payment of interest amount, daily penalty for overdue interest Not applicable
Interest rate on overdue loan Provided by the requirements of Article 411 of the RA Civil Code
Penalty for early repayment Not planned
The basic prerequisites for financing -Non-cash payment method of supplies
-Availability of a package of documents confirming the execution of the export transaction (Invoice, Customs declaration, transport documents, etc.) 		Armswissbank's customer / supplier bank account
Deadline for providing of financing decision within 3-10 business days after submission of all required documents to the bank depending on the specifics of the transaction, the amount, the history of cooperation with the bank, etc. (This period may be extended depending on the date of issuance of the guarantee decision by the importer's bank)
Informing the customer about the decision to provide financing Up to 2 business days
Financing deadline within 3 business days after submission of all necessary documents for registration

* All export factoring tariffs also include the tariffs of the Importer Bank.

In case of export regression factoring, the customer / supplier submits the following documents to the Bank for financial analysis.

Documents Notes R/AR
1. Application (Applicable only to customer) In the form provided by the Bank R
2. Charter copy R
3. IDs of the director and founders (shareholders) stipulated by the Armenian Law (Passport, identification card, etc.), as well as a statement of actual place of residence ** (if available, if not the relevant reference) Copies/ in the case of founders (participants) as required/ R
4. Calculation of income tax (for 2 years) copy R
5. Account balance (Form 1) (for last 2 reporting periods) copy R
6. Income Statement (Form 2) (for the last 2 reporting periods) copy R
7. Value Added Tax Calculations (for the last 24 months) copy R
8. Independent auditor's report (if available) copy R
9. Reference from the tax supervisory body on the fulfillment of tax liabilities Original AR
10. Statements of accounts with other banks (for the last 12 months) copy R
11. Loan and factoring agreements with other banks copy R
12. Decoding accounts receivable and accounts payable original R
13. The decision (statement of decision) of a superior or competent authority (Board or General Meeting, single member) to serve factoring (Applicable only to customer) original R
14. In the case of joint stock companies an extract from the account operator on the composition of the company's shareholders original R
15. Reference from the State Register of Legal Entities on the composition, director, and amendments to the Charter of the Company original / required by the Bank in case when it is not possible to obtain information about the company from the agency through online inquiry / AR
16. Supply contract between supplier / customer and buyer / debtor (if available) copy R
17. Trade flow between supplier / customer and buyer / debtor over the past 12 months (when and how much was delivered to the buyer and when and what payments were received from the buyer) orignal R

In case of non-regressive export factoring, the customer / supplier submits the following documents to the Bank for financial analysis.

Documents Notes R/AR
1. Application (Applicable only to customer) In the form provided by the Bank R
2. Charter copy R
3. IDs of the director and founders (shareholders) stipulated by the Armenian Law (Passport, identification card, etc.), as well as a statement of actual place of residence ** (if available, if not the relevant reference) Copies/ in the case of founders (participants) as required R
4. Referral of participants / shareholders from the implementing body for registration / shareholders (in case of OJSCs and CJSCs) original R
5. Reference from the State Register of Legal Entities on the composition, director, and amendments to the Charter of the Company original / required by the Bank in case when it is not possible to obtain information about the company from the agency through online inquiry / AR
6. Supply contract between supplier / customer and buyer / debtor (if available) copy R
7. Trade flow between supplier / customer and buyer / debtor over the past 12 months (when and how much was delivered to the buyer and when and what payments were received from the buyer) original R

- In case of failure of timely fulfillment of liabilities by the buyer / importer, in case of export regressive factoring, the bank may submit liabilities to the customer / exporter by applying the right of regress (reclaim).

-In case of regressive export factoring by the buyer / importer, penalties will be accrued if the obligations are not fulfilled on time.

-In case of overdue factoring liabilities, the accumulated penalties are paid first, then the accumulated bank interest rate, then the contractual interest, after which the principal amount.

-Attention: In case of failure or failure by the buyer / debtor to fulfill the obligation, the bank sends the data to the credit bureau within 2 (two) business days, where the credit history of the customer / supplier and buyer / debtor is formulated.

-You have the right to get your credit history information free of charge once a year from the credit bureau.

-Attention: A bad credit history can prevent you from getting a loan in the future.

-Warning: your property (home, car or other) may be confiscated in the manner provided by law if you fail to pay your obligations on time.

-Currency rate fluctuations may affect the liability repayments.

-In case of default on your part in case of repayment of the liabilities on the pledge account, if the pledge is not sufficient to cover your liabilities, it is possible to repay the liabilities on the account of your other property (if any).

-For more information on terms, conditions and tariffs for the extracts, their duplicates, references and other information during the term of the contract, see "Accounting for Legal Entities and Individual Entrepreneurs" page.

In the case of import factoring, the Bank's client acts as an importer (resident legal entity of the Republic of Armenia), which guarantees the Bank's proper, timely and complete fulfillment of its obligations to a foreign exporter. A collateral may also be required for an import factoring transaction.

Main conditions
Condition Import factoring
Maximum and mininmum amount Depending on the financial situation of the Armenian importing company and the turnover with the exporter
Maximum and minimum term As a rule up to 120 days
Grace Period By the end of deadline
Repayment schedule of the principal One-time by the end of deadline
Interest repayment schedule Not applicable
Nominal interest rate (calculated on the amount of financing) Not applicable
Limit approval fee 0.5% of the limit amount, at least AMD 50,000
Full service package (non-regression export factoring) commission Up to 1.5% of invoice amount *
Review of current limit AMD 25,000
ՀInvoice processing fee AMD 3,000
Accounts receivable collection Up to 0.2% of invoice amount, minimum AMD 25,000
Security Personal Guarantees for Owners, Managers of Local Importer / Buyer Companies or other security acceptable to the Bank
In case of late payment of principal amount payable, daily penalty for overdue amount 0.1%
In case of late payment of interest amount, daily penalty for overdue interest Not aplicablee
Interest rate on overdue loan Provided by the requirements of Article 411 of the RA Civil Code
Penalty for early repayment Not planned
The basic prerequisites for financing - Non-cash payment method of supplies
- Availability of a package of documents confirming the execution of the export transaction (Invoice, Customs declaration, transport documents, etc.)
- Armswissbank's customer / supplier bank account
Deadline for providing of financing decision within 3-10 business days after submission of all required documents to the bank depending on the specifics of the transaction, the amount, the history of cooperation with the bank, etc. (This period may be extended depending on the date of issuance of the guarantee decision by the importer's bank)
Informing the customer about the decision to provide financing Up to 2 business days
Financing deadline within 3 business days after submission of all necessary documents for registration

*The mentioned amount is charged from the foreign exporter by the exporter bank

LIST OF REQUIRED DOCUMENTS

Documents Notes R/AR
1. Charter copy R
2. IDs of the director and founders (shareholders) stipulated by the Armenian Law (Passport, identification card, etc.), as well as a statement of actual place of residence ** (if available, if not the relevant reference) Copies/ in the case of founders (participants) as required/ R
3. Calculation of income tax (for 2 years) copy R
4. Account balance (Form 1) (for last 2 reporting periods) copy R
5. Income Statement (Form 2) (for the last 2 reporting periods) copy R
6. Value Added Tax Calculations (for the last 24 months) copy R
7. Independent auditor's report (if available) copy R
8. Reference from the tax supervisory body on the fulfillment of tax liabilities orignal AR
9. Statements of accounts with other banks (for the last 12 months) copy R
10. Loan and factoring agreements with other banks copy R
11. Decoding accounts receivable and accounts payable orignal R
12. In the case of joint stock companies an extract from the account operator on the composition of the company's shareholders original R
13. Reference from the State Register of Legal Entities on the composition, director, and amendments to the Charter of the Company original / required by the Bank in case when it is not possible to obtain information about the company from the agency through online inquiry / R
14. Supply contract between supplier / customer and buyer / debtor (if available) copy R
15. Trade flow between supplier / customer and buyer / debtor over the past 12 months (when and how much was delivered to the buyer and when and what payments were received from the buyer) original R

- IN CASE OF IMPORT FACTORING BY THE LOCAL BUYER / IMPORTER, PENALTIES WILL BE ACCRUED IF THE OBLIGATIONS ARE NOT FULFILLED ON TIME.

- IN CASE OF OVERDUE FACTORING LIABILITIES, THE ACCUMULATED PENALTIES ARE PAID FIRST, THEN THE ACCUMULATED BANK INTEREST RATE, THEN THE CONTRACTUAL INTEREST, AFTER WHICH THE PRINCIPAL AMOUNT.

- ATTENTION: IN CASE OF FAILURE OR FAILURE BY THE BUYER / DEBTOR TO FULFILL THE OBLIGATION, THE BANK SENDS THE DATA TO THE CREDIT BUREAU WITHIN 2 (TWO) BUSINESS DAYS, WHERE THE CREDIT HISTORY OF THE CUSTOMER / SUPPLIER AND BUYER / DEBTOR IS FORMULATED.

- YOU HAVE THE RIGHT TO GET YOUR CREDIT HISTORY INFORMATION FREE OF CHARGE ONCE A YEAR FROM THE CREDIT BUREAU.

- ATTENTION: A BAD CREDIT HISTORY CAN PREVENT YOU FROM GETTING A LOAN IN THE FUTURE.

- WARNING: YOUR PROPERTY (HOME, CAR OR OTHER) MAY BE CONFISCATED IN THE MANNER PROVIDED BY LAW IF YOU FAIL TO PAY YOUR OBLIGATIONS ON TIME.

- CURRENCY RATE FLUCTUATIONS MAY AFFECT THE LIABILITY REPAYMENTS.

- IN CASE OF DEFAULT ON YOUR PART IN CASE OF REPAYMENT OF THE LIABILITIES ON THE PLEDGE ACCOUNT, IF THE PLEDGE IS NOT SUFFICIENT TO COVER YOUR LIABILITIES, IT IS POSSIBLE TO REPAY THE LIABILITIES ON THE ACCOUNT OF YOUR OTHER PROPERTY (IF ANY).

- FOR MORE INFORMATION ON TERMS, CONDITIONS AND TARIFFS FOR THE EXTRACTS, THEIR DUPLICATES, REFERENCES AND OTHER INFORMATION DURING THE TERM OF THE CONTRACT, SEE "ACCOUNTING FOR LEGAL ENTITIES AND INDIVIDUAL ENTREPRENEURS" PAGE.

International factoring tariffs* 16.03.2022