Contract Financing

Target group

Legal persons and individuals engaged in entrepreneurial activity in the territory of the country, providing goods and services under a formal agreement with the Seller and receiving payment on the Bank account

Purpose

Financing of the Supplier for the purposes of executing orders based on the Contract, service or order documents

Market experience

At least 12 months of consecutive and uninterrupted operations with official registration.

Financial limit

Min. - AZN 30 000 Max. AZN 1 000 000 (or equivalent) subject to not exceeding 80% of the total amount (after VAT) of service and order documents provided under the sale and purchase and services provision agreements signed between the Seller and the Purchaser.

Minimal amount

AZN 500 (or equivalent) under each order or service document

Currency

AZN

Term

Up to 6 months subject to not exceeding the term of the agreement signed between the Purchaser and the Seller under the order subject to financing

Grace period

5 months

Payment form

Interest is paid on a monthly basis; principal amount is paid upon the end of the term

Annual interest rate

• From AZN 30 001 – up to AZN 250 000 - 16%
• From AZN 250 000 – up to AZN  1 000 000 - 14%

Commission

1 % (one-time)

Security

• Order or service document on the contract subject to financing
• Guarantee of the founder and director
• Other guarantees (if required)

Required documents

• Legal documents
• Turnover report on all bank accounts
• Agreement(s) signed between the Purchaser and the Supplier on the order(s) subject to financing
• Approved Order or service document (s)
• The most recent executed contract(s) and order documents (if any) to identify business track record between other Clients and the Supplier
• The most recent executed contract(s) and order documents (if any) to identify business track record between current Client and the Supplier
• Other documents required for issuing loans for small and medium businesses as well as corporate loans.

Other terms

• Under the terms of the Contract between the Client and the Supplier, payments shall be made through the bank, non-cash and the accounts of the Supplier in Rabitabank OJSC shall be (shall not be) indicated as the Supplier's bank details (otherwise bank details shall be amended in a separate Annex to the Contract).
• Term of cooperation between the Client and the Supplier shall be at least 6 months.
• Number of executed orders between the Client and the Supplier shall not be less than 2.
• No loss shall be recorded in the income statement for the last reporting year.
• Compulsory provisions to be included in the contract between the Bank and the Client: Upon receipt of the funds under the invoice or expiry of the contract, the unpaid balance (incl. interest) shall be written-off from the client's settlement account unconditionally, without the client's consent.
• debt service coverage ratio shall be at least 0,5.