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.

ARMSWISSBANK offers the following types of international factoring

Export 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.

Import factoring – For an import factoring transaction the client of the Bank is the importer (the legal entity of the Republic of Armenia). The Bank guarantees proper, complete and timely repayment of client’s obligations to the international partner (the exporter). Import factoring transactions may require a collateral.

International factoring tariffs*

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 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.

Factoring limit is provided according to the General Terms, 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

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 Bank can undertake the following measures;

  • 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