• Accounts
• Payments
• Deposits
• Financing
• • Loans
  • Factoring
  • Trade Finance and Guarantees
• Operations with foreign currency and gold bars
• Investment services and solutions
• • Investment banking services
  • Investment instruments
• Individual Deposit Boxes
• Online Banking

Factoring is one of the most dynamically developing services in international markets of banking services.

Factoring is the contract based assignment of accounts receivable to the Bank in order to obtain cash payment before the accounts come due.

Factoring includes the following services:

• financing for the seller, including loans and advance payments;
• maintenance and bookkeeping of A/R accounts;
• collection of receivables;
• protection against default in payment by the buyers;

• Opportunity to involve working capital as result of accounts receivable assignment
• Continuous growth of financing  parallel to the growth of sales,
• Growth of production and/ or trading volume due to timely received funds,
Opportunity to offer the buyers deferred payment terms expanding the number of buyers and increasing market share,
• Opportunity to perform tax obligations in time: the client receives necessary financing for the performance of the tax obligations which arise due to the delivered goods which are not paid by the buyer yet,
• Elimination or considerable decrease of loss  relating to the fluctuation of the exchange rates,
• Maintenance of accounts relating to the invoices issued for goods which were delivered with deferred payment terms.

• Opportunity to work with sellers with deferred payment terms,
• Opportunity to expand the range and volume of services provided without additional capital,
• Opportunity to allocate temporarily released cash facilities as a  result of working with deferred payment terms (instead of paying interest for a bank loan),
• Decrease in expenses for financing payment of delivered goods (the seller pays for the factoring services).

The simple step by step chart of factoring is presented below:

ARMSWISSBANK is the only Bank in RA that became a member of Factors Chain International (FCI) and offers international factoring services in approximately 60 countries through 244 member-banks.

Export factoring – it enables the exporter to receive financing for an amount of up to 80% of the supplied goods without a pledge. The other guaranteed 20% the exporter will get from the buyer on the payment day.

For an export factoring transaction the exporter (the legal entity of RA) will benefit the above-mentioned advantages for the sellers, as well as will receive accurate information on the creditworthiness of the present or potential foreign partner.

Import factoring – it enables the importer to use deferred payment terms and increase purchase volumes without involving loans amounts. For an import factoring transaction the importer (the legal entity of RA) will enjoy the above-mentioned benefits for the buyers. Import factoring transaction may also require a pledge.

Tarrifs

When granting a factoring limit, the committee takes into account a number of objective and subjective factors presented below:

Objective factors

The client’s experience, history of cooperation with the partner, complete package of financial statements, bank accounts turnover, frequency of transactions, credit history, etc.

Subjective factors

The client’s business acceptability and conformity with the Bank’s policies, client information accessibility, management quality, cooperation perspectives, etc.

Generally, factoring limits are granted according to the basic requirements but for each specific case of factoring application the factoring limit confirmation body, taking into account the above-mentioned objective and subjective factors, can disregard those criteria or set additional conditions or requirements.

Possible Negative Consequences and Other Material Information

Dear Customer,

In order to avoid any possible negative consequences that might result related to the utilization of factoring services, we encourage you to study carefully the information presented below and contact the Bank’s specialists in case of further questions.

In case of unduly execution of factoring responsibilities (arrears, provision of false information or non provision, deterioration of financial situation observed through monitoring, etc.) besides financial liability measures that the bank can exercise, the following actions can also be implemented according to current legislation:

• Void  the contract before maturity and cease  further financing
• Decrease or nullifyl the  provided limit,
• Undertake mortgage foreclosure and  if after the realization of the pledged property, the  cash flows are not enough, it is possible that legal procedures will be imposed upon  the debtors to foreclose other property they own (if applicable).
• Processing information about Your debtor and, in case of regress contract, also information about You  into the credit register, which will have negative impact on your credit history and obstruct further utilization of credit services (including in  other banks and credit organizations).

Necessary documents for receiving factoring limit (In Armenian)

*These terms are conditional. The Bank offers individual terms for each client depending on the client’s and debtor’s financial situation, as well as on the number and volume of predicted factoring transactions.