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Discounting of receivables under non-transferable letters of credit (export)

Discounting of receivables under non-transferable letters of credit (export)

The discounting of receivables under letters of credit (export) is a form of financing trade receivables arising from opened letters of credit with deferred payment. Such financing is provided to clients of International Asset Bank AD in order to provide working capital in instances of sales under а deferred payment arrangement.

Eligible to borrow are legal entities or sole proprietors, which have a business history of at least 36 months, as follows:

  • manufacturing and trading companies which have trade receivables arising from opened letters of credit with deferred payment;
  • companies that have no economic connection with their counterparts.

Conditions:

  • Timeframe for deferred рayment for each individual delivery/service in compliance with the contract – from 30 to 180 days;
  • Existence of receivables, subject to discounting under opened letters of credit for export, arising from delivery (export) of goods or provision of services;
  • The receivables must be free from encumbrances;
  • Documents of actual export must be provided, in compliance with the terms of the delivery/service contract and existence of maturity of payment confirmed by the bank that issued the letter of credit.
  • Competitive interest rate levels;
  • Competitive levels of the management commission and the charges;
  • Enables flexible increase of the levels of financing the trade turnover;
  • No requirements for additional security;
  • Free activation of the Internet banking service - Asset Online;
  • Opening of card accounts for the company’s employees, with an automatic transfer of their remunerations and an overdraft option, as well as with preferences in regard to package services.
  • Loan amount: up to 80% of the letter of credit value;
  • Currency: BGN, EUR, USD;
  • Repayment term: up to 6 months;
  • Repayment mode: Automatic repayment using funds received on the current account of the company;
  • Collateral:
    - pledge under the Special Pledges Act of the contractual receivable and on the invoices in regard to the export;
    - pledge under the Financial Collateral Contracts Act.

Annual interest rate:


RIR/6м. EURIBOR/LIBOR + the margin, referred to above.

 

 Fees and commissions

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