For Corporate Clients
Purchase order finance (POF)
Ameriabank offers unique financing solution requiring a contract as a loan security instead of a traditional pledge.
POF is envisaged for all cases when a company has executed a contract but lacks financial resources to execute the order or required collateral to receive a loan. For this type of financing the supply contract signed by the company serves as security.
The loans to finance purchase orders are provided non-cash in Armenian drams, US dollars and euros. The amount may be disbursed either lump sum or in parts.
Loan rates can be variable/floating, in which case supplementary agreements on variable component are executed
POF enables you to:
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Receive an amount greater than your current accounts receivable
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Minimize the use of your own resources for reserving and logistics costs
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Easily manage the resources required for seasonal or sudden boost of your business
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Get discounts or bonuses from vendors due to prepaid purchase of raw commodities or products
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Get the service of receivables valuation and management
Loan interest is calculated daily in the loan currency on the outstanding loan principal based on a 365-day calendar year.
In case of the purchase order finance the main security under the agreement is the contract to be financed. In some cases, the bank may request the borrower to provide other collateral, such as fixed assets, working capital, inventories, etc. Since any security other than the financed contract is considered additional collateral, the LTV ratio is not defined.
When applying for a loan, make an informed decision
Updated 29.04.2019, 17:17