Xalq Bank develops together with business partners and provides them financial support with convenient conditions. We give advantages for our partners in terms of conducting trade operations that allow them avoid decrease in their turnover funds.
Factoring and forfaiting services are basically used by trade companies. These services are convenient financial instruments for production, construction, service, sales and other companies.
Factoring is converting money liability of companies and entrepreneurs in front of customers to the bank for financing turnover funds. In other words payments according to the agent agreement and implemented by the factor (Bank) before the sales took place. The customer is not required to pay off in short term. Both sides minimize the risks, provide the constant business operations and increase their funds in cash.
Forfaiting is issuing loans for trade operations by purchasing debt liabilities from sellers on behalf of the customer. Forfeiting is widely used in foreign trade operations. In forfeiting (Bank) receives commercial liabilities of importer or customer and pays total amount of bill of exchange excluding interests and agrees not to forward risks to the seller.
Bank keeps bills of exchange till the end of payment period or sell to another forfaiting company.
Note: Terms for factoring and forfeiting operationd can be agreed individually based on the custmers’ application.