HERE AND BEYOND
Unparalleled Financing Scheme under ‘YOUR CONTRACT IS YOUR COLLATERAL' Motto as Part of 100 Surprises from Ameriabank
Media Room

 

Ameriabank continues the series of 100 surprises to mark the bank’s 100-year anniversary. The bank’s new services open up vast opportunities for the entrepreneurs to receive funding secured by nothing else but their order contracts.
 
Ameriabank offers two new financing tools: 
  1. Purchase order finance (POF)
  2. Classic factoring
 
PURCHASE ORDER FINANCE (POF)
 
Purchase order finance is vital in the case when the company has executed a contract to deliver goods or services but lacks required funds and appropriate means to secure a loan. The collateral under the new financing facility is the contract executed by the company.  
 
With a supply contract available, this new financing tool enables the suppliers to cover such expenses as acquisition of raw materials and half-finished goods, payments to the subcontractors for works performed, customs clearance costs and taxes, shipping, testing and insurance costs, guarantee issuance and other purchase order-related expenses.
 
Purchase order financing is a convenient way to receive funds beyond your accounts receivable, minimize use of own resources for logistics and reserving purposes, handle a large order or seasonal surge in business, benefit from bonuses and discounts offered by the suppliers against prepayment for raw materials and finished goods, as well as benefit from receivables valuation and management service.  
 
CLASSIC FACTORING
 
Ameriabank offers CLASSIC FACTORING scheme to suppliers, a new factoring scheme (non-recourse) where the bank buys out the accounts receivable from certain companies at a discount, provided such companies are included on the list approved by the bank. The discount rate starts from 14% per annum. The funding is available in Armenian drams. 
 
Unlike other financing tools, the funding under classic factoring scheme is secured by the contract between the supplier and the buyer and other supporting documents evidencing receipt of goods or services.
 
The new factoring scheme offers a number of benefits for the suppliers. First, it enables them to boost sales. Second, the risks associated with deferred payment or default by the buyer are transferred to the bank. The suppliers get an opportunity to collect and manage accounts receivable. Last, they may receive payment from the bank up front upon shipment of the goods/services rather than await the settlements with the buyer.    
 
At the same time the buyers are given an opportunity to benefit from up to 4 months deferred payment scheme, boost purchase volumes, minimize the ordered product (service) delivery delays and the risk of receiving defective products, and speed up the turnover of funds.
 
The bank may provide funding for the goods/services sold to the companies listed below.
1. ARMENIA INTERNATIONAL AIRPORTS CJSC
2. ARMENIA TELEPHONE COMPANY CJSC
3. YEREVAN BRANDY COMPANY CJSC
4. YEREVAN JUR CJSC
5. ZANGEZUR COPPER AND MOLYBDENUM COMBINE CJSC
6.  ELECTRIC NETWORKS OF ARMENIA CJSC  
7. ARMROSGAZPROM CJSC
8. ARMENIAN NUCLEAR POWER PLANT CJSC
9. SOUTH CAUCASUS RAILWAY CJSC
10. K-TELECOM CJSC
11. RUSAL-ARMENAL CJSC
 
Ameriabank is open to review proposals of companies wishing to be included on the list.  
 
The new financing tools offered by Ameriabank open vast opportunities for the entrepreneurs to enhance their business and boost competitiveness.
 
 
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Ameriabank CJSC is a corporate, investment bank offering also a limited range of retail services in a comprehensive set of banking solutions. Ameriabank’s Chairman of the Board of Directors is Ruben Vardanian and CEO is Artak Hanesyan. The bank’s strategic partner is Troika Dialog group, a major Russian investment company.  
Updated 05.11.2010, 16:58
Updated 10.11.2010, 13:49
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