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In a course of international trade operations, each exporter desires to receive payment for sold products and rendered services sooner, while the importing company wants to have some time before making such payment.
In order to assist, the first and only member of the Factors Chain International in Azerbaijan offers Import and Export Factoring services to the companies engaged in foreign trade operations.
The membership of PASHA Bank in the Factors Chain International that joins more than 270 bank and companies of the world, gives it an access to the international factoring services market. As a result, the customers gain an opportunity to expand the foreign trade operations and strengthen their competitive advantages.
Each member of the Chain has to meet strict requirements with regard to the financial stability and the quality of the rendered services, which ensures high level international factoring services offered to the customers.
Export Factoring service is when the companies exporting from Azerbaijan assign their right to collect payments (accounts receivables) from the Buyers (Debtors) to the Bank (Factor) in order to finance their current assets (payments). The Bank, in its turn, finances the exporter by assigning the said debt to a factoring company or a bank in the Buyer’s country.
Import factoring service is when the Bank (Factor) arranges payment of monetary claim (accounts payable) to the Supplier in order to ensure the fulfilment of liabilities of the companies importing to Azerbaijan (Debtors) to the foreign Suppliers (Exporters). The Bank finances this transaction via a factoring company or a bank in the Exporter’s country.
Advantages of the International factoring services
• Accelerated receipt of the cash up to 90% of debts and increase of currents assets;
• Financing of foreign trade transactions under more favourable conditions;
• Eligibility to discounts due to early payments and increased sales volumes;
• Increased sale of products in foreign markets due to competitive sale terms;
• Facilitated debt collection procedure for the Exporter;
• Professional management of receivables;
• Protection of the Exporter and the Importer from currency risks and transfer of such risks to Export and Import factors;
• Accelerated import of products and services for the Importer;
• Enabling the Importer to utilize the current assets for more important needs.