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If your partners do not always pay in time or ask to defer the payment, JSC “BSB Bank” propose you to take advantage of factoring service. Factoring allows Belarusian companies (suppliers, contractors, manufacturers, exporters) to carry out mutual settlements (with customers) on the optimally favorable conditions within the shortest possible period of time.
Factoring is financing against money claim cession where one party (factor) assumes liability to another party (creditor) under the factoring contract to enter into financial obligation between the creditor and the debtor (payer) in favor of the creditor by paying to the creditor the amount of the debtor’s financial obligation at a discount.
- The supplier delivers goods (provides services) to the Customer.
- The Customer is obliged to pay for the goods (services) with a delay.
- The Bank pays the amount of debt obligation of the Customer at a discount to the account of the Supplier on the next day after factoring contact signing. The supplier receives funds prior to the date specified in the contract concluded between the supplier and the Customer (replenish its working capital).
- The Customer pays within the time limits agreed with the Bank.
The types of Factoring are as follows:
- notification factoring, when the creditor notifies the debtor of factoring contract execution and transfer of creditor’s rights to the Bank;
- hidden factoring, when the creditor does not notify the debtor of factoring contract execution and creditor’s rights are not being transferred to the Bank;
- non-recourse factoring, when the Bank finances the creditor without the right of further return of outstanding money claim to the creditor. In this case the Bank bears the risk of bad debt;
- recourse factoring, when the Bank has the right to return the outstanding money claims to the Creditor, if the creditor accepts a bail for the debtor and bears the risk of bad debt.
Factoring transactions allow the Belarusian companies to solve such problems as:
- lack of working capital;
- significant accounts receivable;
- low turnover.
Documents for Conclusion of the Factoring Agreement
The Bank studies the Creditor’s legal capacity and whether a debt obligation appeared prior to the Factoring Agreement conclusion.
In order to obtain the relevant information, the Bank shall request the Creditor to provide the following documents in compliance with legislation of the Republic of Belarus in force:
- Factoring Agreement application submitted in any form or in accordance with the Bank’s template;
- Copy of the Articles of Association, certified by the company’s stamp;
- Copy of the State registration (re-registration) Certificate, certified by the company’s stamp;
- Transaction worksheet;
- Documents, confirming the representative’s authority to conclude the Factoring Agreement and sign other documents on behalf of the Creditor;
- Copies of contracts (stamped by the Creditor) concluded between the Creditor and the Debtor (еру Payer) and related documents, supplements, etc. under which financing is provided;
- Copies (stamped by the Creditor) of payment demands, invoices and other documents provided by legislation and the contract terms between the Creditor and the Debtor (the Payer);
In case of the recourse Factoring Agreement the Bank shall additionally request the Creditor to provide documents indicating the Creditor’s financial position:
Creditor’s balance-sheets: annual (with all supplements) and as of the last reporting date with supplements (forms 1 and 2);
Other documents at the Bank’s discretion.
The Bank shall request the Creditor to provide the following documents in case of the property pledge:
- The list of the pledged property, stamped by the Client;
- Copies of documents, certifying the title for the pledged property (sales and purchase contract, waybills, cargo customs declarations, registration certificates (in case of mortgage), technical certificates, etc.), stamped by the Client;
- Copies of lease and storage contracts, technical certificate for the storage premises.
In order to obtain the relevant information, the Bank shall request the Creditor to provide the following Debtor’s documents:
- Copy of the Articles of Association, certified by the Debtor company’s stamp;
- Copy of the State registration (re-registration) Certificate, certified by the Debtor company’s stamp;
- Copy of the Director’s appointment order, certified by the Debtor company’s stamp;
- Debtor’s balance-sheets: annual (with all supplements) and as of the last reporting date with supplements (forms 1 and 2);
- Other documents at the Bank’s discretion.
For further information about factoring please contact the Factoring Transactions Department specialists Alexandra Bohun, Julia Tsublenok, Olga Bitel on tel. +375 17 3064929 and +375 17 3064930.
BSB BANK FACTORING – GUARANTEED CAPITAL DEFICIT ABCENCE
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