Factoring transaction scheme description
For factoring transactions funding, Commercial Banks (hereinafter referred to as the RKDF Partner Banks) issue funds within the established limits in the frame of the loan facility.
The supplier (exporter) and the borrower enter into an agreement for the supplier current assets funding, or a factoring agreement under existing contracts with the customers. At the discretion of the borrower, the contract may establish both notification and undisclosed factoring. The supplier enters into a firm agreement with the customer, obliging the customer (upon goods delivery) to pay according to the contract the full amount with no right to return the goods. The supplier delivers the goods and transfers it to the customer against the acceptance certificate. The supplier submit to the borrower the supply agreement, acceptance certificates, an invoice, as well as other documents confirming the shipment and acceptance of goods by the customer together with the application for funding.
The loan holder (against the submitted documents) within several working days from the date of the supplier documents submission, transfers the funds ( 90% of the contract amount) to the supplier bank account specified in the agreement between the supplier and the customer.
The customer transfers the payment amount to the supplier bank account. The bank, in accordance with a direct debit agreement, or the corresponding factoring agreement, closes the supplier debt to the Partner Bank. RKDF Partner Banks/Commercial Banks Risks fully accepts the loan non-repayment risks.
Supplier evaluation procedure prior to the funding under the “Factoring transactions funding" loan product - at the discretion of the Partner Bank.
Target industry segment:
Small and medium-sized businesses, companies-tax residents of the Kyrgyz Republic, exporting products in favor of Russian customers (retail chains and other companies), operating for at least 6 months
Requirements for Partner Banks:
According to the requirements under the "Lending to small and medium-sized businesses through commercial banks" Program. Partner Banks accept all risks on loans/factoring transactions.
Purpose of loan:
Funding up to 90% of the amount of one delivery through the buy-backs of short-term receivables from the customer (by the decision of the Partner Bank, a higher limit can be established for the factoring transaction: for the most reliable customers up to 100% of the export contract)
Types of goods subject to funding
— Russian retail chains and Russian companies, including intermediary.
By the decision of the Partner Bank, the risks of intermediary companies may be additionally covered by the customer bank guarantee in favor of the supplier bank (factor)
Funding in US dollars is possible provided that the export contract is paid in US dollars
Terms of borrowers funding by the bank:
Depending on the product type and the specific contract, there are the following terms:
There is a possibility of early repayment
Foreign exchange risks are covered by the borrower
Terms of Partner Banks funding by the RKDF
Coincides with the term of the factoring transaction
Final rate for borrowers
The final rate for the borrower should not exceed the rate established by the RKDF, increased by 5 percentage points
Minimum loan amount per borrower
1,000,000 KGS/equivalent in US dollars/equivalent in Russia rubles
Maximum loan amount per borrower
70,000,000 KGS/equivalent in US dollars/equivalent in Russia rubles.
Exceeding the maximum limit is possible provided for the RKDF no-objection.
1. Notification factoring with mandatory notification of the customer about the assignment of the legal claim ;
2. Undisclosed factoring, without customer notification about factoring operations, with mandatory regression to the Borrower.
Loan application packages
At the discretion of the Partner Bank
Requirements for SMEs
 Factoring can be done through an electronic trading platform.