Financing

Domestic Factoring

Armswissbank is one of the first financial institutions operating in Armenia that has implemented and developed factoring as an effective tool of short-term trade finance. The Bank offers wide range of factoring services suitable for needs and requirements of each client.

Factoring is a financial transaction in which the client assigns the collection rights of its accounts receivable to the Bank at a discount.

Factoring includes the following services:

Financing sales on deferred payment terms
Accounts receivable administration
Collection of accounts receivable
Protection against buyers’ default

A sample of factoring transaction is displayed below:

1. The seller (the Bank's client) delivers the goods to the buyer (debtor) on deferred payment terms and issues the invoice

2. The seller then presents the invoice and the delivery documents to the Bank

3. The Bank pays the seller the main part of the invoice amount (up to 90%) and charges the commission

4. On due date the buyer pays the Bank the total amount (100%) of the invoice

5.The Bank pays the seller the remaining 10% of the sum, less the accumulated interest for the financing.

The advantages of factoring

Advantages for sellers

Opportunity of increasing working capital in short terms by assigning the accounts receivable
continuous growth of financing together with growth of sales
growth in production and/or trade volume due to availability of funds
the opportunity to offer the buyers deferred payment terms, thus expanding the number of buyers and increasing market share
improvement of tax discipline - the client receives necessary funds to make the tax payments which arise from delivered goods which are not yet paid for
avoiding or minimizing losses arising from the fluctuations of the exchange rates
administration of accounts receivable upon client’s request
protection against buyer’s default (in case of non-recourse factoring).

Advantages for buyers

Working with sellers on deferred payment terms
increasing the volume and assortment of products without involving additional capital
managing temporarily available funds by working on deferred payment terms (instead of paying interest for a bank loan),
decreasing expenses of financing the payment for goods delivered (the seller pays for the factoring services).

The authorized body approving the factoring limit (the maximum amount of factoring that can be provided to the seller for a certain buyer) takes into consideration the following objective and subjective factors:

Objective factors

Client’s and/or seller’s experience, history of cooperation with the factoring partner, financial statements, accounts’ turnover, volume of potential transactions, credit history, etc.

Subjective factors

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

ARMSWISSBANK offers the following types of domestic factoring

Recourse factoring In case of recourse factoring the Bank has the right to collect the unpaid invoice amount from the seller i.e. the seller guarantees proper, complete and timely repayment of buyer’s obligations to the Bank.

MAIN CONDITIONS

Main Conditions
Condition	Recourse factoring	Non-recourse factoring	Closed factoring	Factoring-Guarantee
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	no restrictions
Minimum and Maximum Term	As a rule up to 120 days, in some justified cases up to 270 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 10% USD from 6.5% EUR from 6%
Amount of financing	Up to 90% of invoice amount
Limit approval fee	0.25% of the limit, at least AMD 25,000
Providing fee	From 0.1% of invoice amount, minimum AMD 1,000
Review of current limit	0.25% of the incremental part, up to AMD 15,000
Limit reaffirmation (the limit shall be deemed reaffirmed if the latter has expired no later than the 90th day before the application for confirmation is filed) AMD 15,000	AMD 15,000
Financing Application Fee	AMD 2,000
Buyer Notification fee	AMD 500
Security	Client / Supplier / company guarantee, Client / Supplier / and Receiver / Buyer / company owners guarantees or other security acceptable to the Bank	Debtor / Buyer / company owner guarantee, personal guarantees of managers or other security acceptable to the Bank	Customer / Supplier / Company Owners and Managers personal guarantees, pledge of remuneration to the buyer company or other security acceptable to the Bank	Personal guarantees of the Owners / Managers of the Debtor / Buyer / Company 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 applicable	Applicablev	0.1%	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 - Document proving the right of monetary claim on the buyer (ID, act, 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.
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

LIST OF REQUIRED DOCUMENTS

In case of regressive factoring both the customer / supplier and the buyer / debtor submit to the Bank the following documents 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)	original	R

NECESSARY INFORMATION

-In case of regressive factoring both the customer / supplier and the buyer / debtor submit to the Bank the following documents for financial analysis.

-If the client / debtor fails to fulfill the obligations on time, the bank may submit a claim to the client / supplier for repayment of obligations using the right of recourse (reclaim).

-Penalties are collected in case of failure to fulfill obligations by the client / debtor.

-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.

Non-recourse factoring

In the case of non-regressive factoring (without the right of demand) the customer / supplier is not responsible for the proper, timely and full execution by the buyer / receiver of the financing amount with the Bank.

MAIN CONDITIONS

MAIN CONDITIONS
Condition	Recourse factoring	Non-recourse factoring	Closed factoring	Factoring-Guarantee
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	No restrictions
Minimum and Maximum Term	As a rule up to 120 days, in some justified cases up to 270 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 10% USD from 6.5% EUR from 6%
Amount of financing	Up to 90% of invoice amount
Limit approval fee	0.25% of the limit, at least AMD 25,000
Providing fee	From 0.1% of invoice amount, minimum AMD 1,000
Review of current limit	0.25% of the incremental part, up to AMD 15,000
Limit reaffirmation (the limit shall be deemed reaffirmed if the latter has expired no later than the 90th day before the application for confirmation is filed)	AMD 15,000
Financing Application Fee	AMD 2,000
Buyer Notification fee	AMD 500
Security	Client / Supplier / company guarantee, Client / Supplier / and Receiver / Buyer / company owners guarantees or other security acceptable to the Bank	Debtor / Buyer / company owner guarantee, personal guarantees of managers or other security acceptable to the Bank	Customer / Supplier / Company Owners and Managers personal guarantees, pledge of remuneration to the buyer company or other security acceptable to the Bank	Personal guarantees of the Owners / Managers of the Debtor / Buyer / Company or other security acceptable to the Bank
In case of late payment of principal amount payable, daily penalty for overdue amount 0.1 %	0.1%
In case of late payment of interest amount, daily penalty for overdue interest	Not appllicable	Applicable	0.1%	Not applicabple
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 - Document proving the right of monetary claim on the buyer (ID, act, 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.
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

LIST OF REQUIRED DOCUMENTS

In case of non-regressive factoring both the customer / supplier and the buyer / debtor submit to the Bank the following documents for financial analysis.

Documents submitted by the customer / supplier

	Documents	Notes	R/AR
1.	Application (Applicable only to customer)	In the form provided by the Bank	R
2.	Charter	In the form provided by the Bank	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 ** (copy provided by the bank)	Copies/ in the case of founders (participants) as required/	R
4.	In the case of joint stock companies an extract from the account operator on the composition of the company's shareholders	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

Documents submitted by the buyer / debtor

	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	original	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	original	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

NECESSARY INFORMATION

-PENALTIES ARE COLLECTED IN CASE OF FAILURE TO FULFILL OBLIGATIONS BY THE CLIENT / DEBTOR.

-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.

Closed factoring

Closed factoring (accounts receivable financing). In case of closed factoring, the buyer / receiver is not notified of the factoring transaction, and the client / supplier is solely responsible for the proper fulfillment of factoring obligations.

MAIN CONDITIONS

Main Conditions
Conditions	Recourse factoring	Non-recourse factoring	Closed factoring	Factoring-Guarantee
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	no restrictions
Minimum and Maximum Term	As a rule up to 120 days, in some justified cases up to 270 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 10% USD from 6.5% EUR from 6%
Amount of financing	Up to 90% of invoice amount
Limit approval fee	0.25% of the limit, at least AMD 25,000
Providing fee	From 0.1% of invoice amount, minimum AMD 1,000
Review of current limit	0.25% of the incremental part, up to AMD 15,000
Limit reaffirmation (the limit shall be deemed reaffirmed if the latter has expired no later than the 90th day before the application for confirmation is filed)	AMD 15,000
Financing Application Fee	AMD 2,000
Buyer Notification fee	500 AMD
Security	Client / Supplier / company guarantee, Client / Supplier / and Receiver / Buyer / company owners guarantees or other security acceptable to the Bank	Debtor / Buyer / company owner guarantee, personal guarantees of managers or other security acceptable to the Bank	Customer / Supplier / Company Owners and Managers personal guarantees, pledge of remuneration to the buyer company or other security acceptable to the Bank	Personal guarantees of the Owners / Managers of the Debtor / Buyer / Company 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 applicable	Applicable	0.1%	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 - Document proving the right of monetary claim on the buyer (ID, act, 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.
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

LIST OF REQUIRED DOCUMENTS

In the case of closed factoring customer / supplier submit to the Bank the following documents for financial analysis.

	Document	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 /	R
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)	original	R

NECESSARY INFORMATION

-REPAYMENT OF THE PROVIDED FINANCING IS MADE BY THE MONEY TRANSFERRED TO THE CUSTOMER / SUPPLIER BY THE BUYER / DEBTOR. IN CASE WHEN THE BUYER / DEBTOR DOES NOT RECEIVE THE FUNDS UNTIL THE REPAYMENT DATE OF THE FINANCING, THE CUSTOMER / SUPPLIER REPAYS IT AT HIS OWN EXPENSE.

-PENALTIES WILL BE ACCRUED IF THE CLIENT / SUPPLIER FAILS TO FULFILL THEIR OBLIGATIONS 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.

-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.

Factoring-Guarantee

In case of factoring guarantee, the Bank covers the risks of non-payment by the buyer / debtor by guaranteeing the proper / timely and complete fulfillment of the liabilities assumed by the buyer / debtor to the customer / supplier. Where the buyer / debtor fails to pay the customer / supplier within the timeframe specified in the supply contract, the Bank shall pay the customer / supplier instead of the buyer / debtor, financing the latter.

MAIN CONDITIONS

Main conditions
Condition	Recourse factoring	Non-recourse factoring	Closed factoring	Factoring-Guarantee
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	no restrictions
Minimum and Maximum Term	As a rule up to 120 days, in some justified cases up to 270 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)	ՀAMD from 10% USD from 6.5% EUR from 6%
Amount of financing	Up to 90% of invoice amount
Limit approval fee	0.25% of the limit, at least AMD 25,000
Providing fee	From 0.1% of invoice amount, minimum AMD 1,000
Review of current limit	0.25% of the incremental part, up to AMD 15,000
Limit reaffirmation (the limit shall be deemed reaffirmed if the latter has expired no later than the 90th day before the application for confirmation is filed)	AMD 15,000
Financing Application Fee	AMD 2,000
Buyer Notification fee	AMD 500
Security	Client / Supplier / company guarantee, Client / Supplier / and Receiver / Buyer / company owners guarantees or other security acceptable to the Bank	Debtor / Buyer / company owner guarantee, personal guarantees of managers or other security acceptable to the Bank	Customer / Supplier / Company Owners and Managers personal guarantees, pledge of remuneration to the buyer company or other security acceptable to the bank	Personal guarantees of the Owners / Managers of the Debtor / Buyer / Company 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 applicable	Applicable	0.1%	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 - Document proving the right of monetary claim on the buyer (ID, act, 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.
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

LIST OF REQUIRED DOCUMENTS

In the case of factoring-Guarantee, both the customer / supplier and the buyer / debtor submit to the Bank the following documents for financial analysis.

Documents submitted by the customer / supplier

	Document	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.	In the case of joint stock companies an extract from the account operator on the composition of the company's shareholders	Orignal	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

Documents submitted by the buyer / debtor

	Document	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	original	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	original	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

NECESSARY INFORMATION

- PENALTIES ARE COLLECTED IN CASE OF FAILURE TO FULFILL OBLIGATIONS BY THE CLIENT / DEBTOR.

-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.

-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.

Domestic factoring tariffs*

Objective factors

Client’s and/or seller’s experience, history of cooperation with the factoring partner, financial statements, accounts’ turnover, volume of potential transactions, credit history, etc.

Subjective factors

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

Factoring limit is provided according to the General Terms, (in Armenian) however the authorized body approving the limit can renounce from these terms, or propose individual conditions and/or requirements considering the above mentioned objective and subjective factors.

Possible negative consequences, other important information

Dear Client`

In case the client fails to perform his factoring obligations (falling into arrears, providing fake information or refusing to provide information, worsening of financial situation according to monitoring results, etc.), the following actions may be taken by the Bank in addition to the applicable financial sanctions legislation:

termination of the factoring contract and financing, decreasing or closing the factoring limit,
confiscation and realization of the collateral, moreover, if the revenue from the realization of the collateral is not enough for repayment, legal procedures may be held to foreclose other property of the debtor/guarantor (if applicable)
registering information about the debtor and the client (in case of recourse factoring) in Credit Registry, which will have negative impact on client’s/debtor’s credit history and will prevent from further access to lending services (including from other banks and credit organizations)

Necessary documents for receiving factoring limit (In Armenian)

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

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A sample of factoring transaction is displayed below:

The advantages of factoring

ARMSWISSBANK offers the following types of domestic factoring

Possible negative consequences, other important information

In case of complaints and
suggestions write to us

UPDATED: 30.04.2020. 10:46