Criteria
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Conditions
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Target group
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Legal persons and individuals engaged in entrepreneurial activity in the territory of the country, providing goods and services under a formal agreement
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Purpose
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Financing of accounts receivable based on invoice and bill issued under the agreement
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Market experience
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At least 12 months of consecutive and uninterrupted operations with official registration. |
Financial limit
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Min. - AZN 30 000 Max. AZN 1 000 000 (or equivalent) subject to not exceeding 90% of the total balance after deduction of VAT on total amount of invoices issued under the signed sale and purchase and service provision agreement
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Minimal amount under each invoice
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AZN 500 (or equivalent)
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Currency
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AZN
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Term
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Subject to not exceeding the term of the agreement signed between the Purchaser and the Seller under the invoice subject to financing
Up to 3 months
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Grace period
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2 months
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Payment form
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Interest is paid on a monthly basis; principal amount is paid upon the end of the term
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Annual interest rate
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- From AZN 30 001 – up to AZN 250 000 - 13%
- From AZN 250 000 – up to AZN 1 000 000 - 12%
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Commission
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1 % (one-time)
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Security
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- Receivables under invoice subject to financing
- Guarantee of the founder and director
- Other guarantees (if required)
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Required documents
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- Legal documents
- Turnover report on all bank accounts
- Agreement(s) signed between the purchaser and the seller on invoice(s) subject to financing
- Invoice(s) approved by the Purchasing company
- E-invoice(s)
- The most recent contract(s) between the Purchaser and the Seller to identify track record of provided goods and services
- Other documents required for issuing loans for small and medium businesses as well as corporate loans.
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Other terms
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- Under the terms of the Contract between the Purchaser and the Seller, payments shall be made through the bank, non-cash and the accounts of the Seller in Rabitabank OJSC shall be (shall not be) indicated as the Seller's bank details (otherwise bank details shall be amended in a separate Annex to the Contract).
- Term of cooperation between the Purchaser and the Seller shall be at least 6 months.
- Number of executed bills 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.
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