Purpose

Financing accounts receivable for delivered goods and services

Factoring Limits

Small businesses: Up to 1 billion UZS

Medium businesses: Up to 5 billion UZS

Legal entities: Up to 10 billion UZS

Factoring Term

Up to 120 days
For contracts with a General Agreement, term can extend to 12 months

Funding Currency

Uzbek sum (UZS)

Funding Source

Bank’s own funds and/or raised deposits

Factoring Disbursement Process

• A factoring account is opened in the supplier's (creditor’s) name

• Funds are transferred after deducting the applicable discount

Discount Rates

• Up to 30 days – 2.5% of the factoring amount

• Up to 60 days – 5%

• Up to 90 days – 7.5%

• Up to 120 days – 10%

Repayment Schedule

Based on future cash inflows of the supplier (creditor)

Recourse Rights

With recourse

Exclusions (Factoring is NOT available for):

• Budgetary organizations

• Individual debt obligations

• Insolvent or loss-making businesses

• Capital investment financing

• Export consignment contracts

• Compensation and barter agreements

• Installment-based or phased payments

• Contracts that allow return of goods after the transaction

Key Eligibility Requirements for the Supplier (Creditor) – Reverse Factoring

1. Not less than 12 months from the date of establishment;

2. Debt load of the supplier (creditor) should not exceed 50%;

3. The authorized capital should be fully formed by the founders within the specified term;

4. At least 6 months should pass from the moment of opening of the main account in the system of ADB “Business Development Bank”;

5. During the last 12 months the composition of founders has not changed completely (except for changes among close relatives);

6. Statement of financial results (Form No. 2) that the last reporting period did not end with a loss;

7. Availability of working capital should not be negative;

8. No overdue credit indebtedness on existing loan and equivalent transactions; No outstanding debts on card account No. 2;

9. According to the CATM certificate, the client should have no existing loans categorized as “unsatisfactory”, “doubtful”, and “bad” in ADB's Business Development Bank system with all commercial banks and related enterprises;

10. Loans within the last 60 months;

11. Not more than 10 debts overdue for more than 30 days;

12. No more than 3 debts overdue for more than 60 days;

13. Must not have more than 1 debt more than 90 days past due;

14. There should not be any arrears more than 120 days past due;

15. There must be no arrears of more than 90 days on existing credit debt within the last 2 years;

16. The client must not have any amount due for payment under an enforcement case initiated by the Executive Bureau;

17. Must not have any pending lawsuits on My.sud.uz;

18. Have no relation to the payer (debtor).

Purpose

Financing accounts payable for delivered goods and services

Factoring Limits

Small businesses: Up to 1 billion UZS

Mid-sized businesses: Up to 3 billion UZS

Large enterprises: Up to 7 billion UZS

Factoring Term

Up to 120 days

For agreements under a General Factoring Agreement, term can extend to 12 months

Funding Currency

Uzbek sum (UZS)

Funding Source

Bank’s own funds and/or raised deposits

Factoring Disbursement Process

A factoring account is opened in the buyer’s (debtor’s) name, and funds are transferred to the supplier after deducting the applicable discount.

Discount Fees

• 
  Up to 30 days – 3% of the factoring amount

• Up to 60 days – 5.5%

• Up to 90 days – 8%

• Up to 120 days – 10%

Repayment Schedule

Based on expected payments from the buyer (debtor)

Recourse Rights

Non-recourse factoring – The bank assumes the risk of non-payment.

Ineligible Transactions for Factoring

Factoring services are not available for:

• Government contracts

• Personal debt obligations

• Insolvent or financially distressed businesses

• Companies with negative working capital

• Capital investment financing

• Export consignment contracts

• Barter or offset agreements

• Installment-based or phased payment transactions

• Purchase agreements where the buyer has the right to return goods within a specified period

Key Eligibility Requirements for Buyers (Debtors)

1. 
   Business Age – Must have been in operation for at least 12 months.

2. Debt-to-Income Ratio – The buyer’s total debt should not exceed 50% of revenue.

3. Charter Capital – Fully funded within the required timeframe.

4. Banking Relationship – Must have maintained a primary business account with the Bank of Business Development for at least 6 months.

5. Ownership Stability – No major changes in shareholders within the past 12 months, except for transfers among close relatives.

6. Must provide financial statements (Form No. 2) confirming a profitable last reporting period.

7. Must maintain positive working capital (i.e., assets exceeding liabilities).

8. No delinquent loans or overdue payments on existing credit facilities.

9. No outstanding balances on business credit cards.

10. No active problematic loans classified as “unsatisfactory,” “doubtful,” or “bad debt” in the Bank of Business Development’s credit system or with other financial institutions.

11. No more than 10 late payments exceeding 30 days within the past 60 months.

12. No more than 3 late payments exceeding 60 days.

13. No more than 1 late payment exceeding 90 days.

14. No overdue debts exceeding 120 days.

15. No history of late payments exceeding 90 days within the past 2 years.

16. No active enforcement actions or unpaid obligations under court rulings.

17. No ongoing legal disputes listed on My.sud.uz.

18. The buyer must not be directly affiliated with the supplier (creditor).