Purchase Order Finance | Micro and Small Business | Ameriabank
Նախորդ տարբերակին անցում կատարելու համար սեղմել   այստեղ

Purchase Order Finance

For businesses with up to AMD 750M annual turnover

Financing limit, up to 75% of order price, AMD 1-30 million or its equivalent in other currency.

Purchase order finance is a convenient solution, if you have a contract but don't have free cash to perform it or collateral to pledge for a loan. Your purchase contract itself is the main security for your financing.

  • Apply online
  • Get financing of up to 75% of order price
  • No early repayment fee
  • Upload files and track your application online. If you meet the Bank's criteria, our specialist will get in touch with you within 1 business day after you apply.

Financing Limit

• Up to 75% of order price

Term • 45

45 - 180 days

Amount

  • AMD 1-30 million or its equivalent in other currency

Ready to apply for a loan?

FAQ

Can I apply for a loan without visiting the Bank?

Yes, you can use the Bank's website to apply online for any business loan. Our specialists will get in touch with you. You can also use the online platform to track your application

Can I get loan approval online without visiting the Bank?

Yes, you can get your approval online if your loan is within AMD 10 million. If you have an account with Ameriabank and a valid ID card, you can also get the money online without having to visit the Bank in person.

Where can I learn about interest rates?

Information about interest rates is available on Ameriabank's official website: go to menu and select the item you are interested in from “Loans”. For more information feel free to call us at +37410 56 11 11 or visit the nearest branch office. Find our locations and learn about work hours here.

Can I get a loan, if I already have an outstanding business loan in another bank?

To provide a loan, the Bank performs creditworthiness analysis. Loans in other banks are not a deal-breaker, if your general creditworthiness ratios meet our criteria.

You can also consolidate your loans in other banks by transferring them to Ameriabank. If your loans are within AMD 20 million, you can have them transferred to and refinanced by Ameriabank automatically, without having to visit other banks for formalities.

What documents do I need to apply for a loan?

To apply for a loan online, you need to provide certain basic data about your business (TIN, ID). Depending on the type of loan you choose, other documents or information might be required at further stages, which you can upload on our webpage without having to visit the Bank in person.

Can I transfer loans from other banks to Ameriabank?

Yes, you can consolidate your loans in other banks by transferring them to Ameriabank. Loans within AMD 20 million can be transferred to and refinanced by Ameriabank automatically, no need to visit other banks for formalities.

Are there any restrictions as to which industry you have to work in in order to get a loan?

Yes, Ameriabank does not finance the following industries: • Production or trade in any product or activity deemed illegal under the Republic of Armenia laws or regulations or international conventions and agreements • Production or trade in weapons and munitions • Gambling, casinos and equivalent enterprises • Trade in precious stones • Currency exchange business • Brokerage or bookmaking offices • Production, use of or trade in hazardous substances (like radioactive materials) other than pesticides and fertilizers used in agriculture

How to apply

Contract/Purchase Order Finance

Loan type

Contract/Purchase Order Finance

Purpose

Financing is purely transaction-driven and may be used for funding of specific orders under the contracts.

Clients

Legal entities or individual entrepreneurs having at least 1-year experience in the industry of financed contract/purchase order

Exclusion list

1. Production or trade in any product or activity deemed illegal under the Republic of Armenia laws or regulations or international conventions and agreements
2. Production or trade in weapons and munitions
3. Gambling, casinos and equivalent enterprises
4. Trade in precious stones
5. Currency exchange office
6. Brokerage or bookmaking offices
7. Production, use of or trade in hazardous substances (like radioactive materials) other than pesticides and fertilizers used in agriculture

See exclusion list here.

Creditworthiness assessment*

According to the approved criteria

Loan conditions

Currency

AMD

USD

EUR

Minimum and maximum loan limit

Up to 75% of PO, AMD 1,000,000 - 30,000,000

Term (months)

45-180 days or the term stipulated in the contract + max 15 days, whichever is less

Annual interest rate

16%
(effective rate: 18.6-20.8%)

13%
(effective rate: 15.1-17.2%)

11.5%
(effective rate: 13.4-15.5%)

If the loan is secured by cash or bonds issued by Ameriabank, the interest rate is:
- Applicable interest rate for cash/bond + 4%, but in any case not more than the rates specified above, if the loan and the collateral are in the same currency
- Rates specified above, if the loan and the collateral are in different currencies

Where the client wishes that insurance of property should be obtained by the bank, the rate of interest is increased by:
• 2.5% if the pledge is vehicle, or
• 0.5% if the pledge is plant and equipment.

- In case of financing for purchase of solar power plants and water heating systems, the insurance related costs are included in the loan interest rate.
Where the insurance of real estate is obtained by the client, the interest rate is reduced by 0.05%, based on the share of each type of assets in the total collateral.

If loan-to-value ratio differs from approved standard, the applicable interest rate is increased by 0.5%.

Depending on credit history, the applicable interest rate can be increased by 0.5%.

Loan disbursement fee

 0.5% of the loan amount

Terms of PO / contract finance

1. Financing is backed with order-related invoices and the like. Financing is disbursement-based.
2. Any payments for raw commodities etc., services & inventories necessary for performance of order, as well as for honoring of salaries, tax liabilities and other order-related commitments shall be made in non-cash form.
3. Insurance of goods (cargo) acquired for order execution

Loan cashing

Not applicable in case of AMD withdrawals from the borrower's account

1% of the amount withdrawn in case of foreign currency withdrawals

Loan modification application fee

AMD 500,000

Repayment

Any amount received under the executed contract shall be used for loan repayment.

Security

Eligible security

1. Working assets
2. Account cash flows and account balance
3. A/R and other rights deriving from the given contract
4. A/R and other rights deriving from other contracts
5. Guarantee of the owners
6. Bank guarantee
7. L/C issued in favor of the client upon the buyer's request

For financing of over 75% of the contract price, pledge of assets is required. Financing may be secured by the real estate, vehicles, plant and equipment, satisfactory to the Bank, metal accounts in gold, cash, bonds issued by Ameriabank.

LTV ratio for financing of 75% -100% of the PO (based on the liquidation value)

The value of the security is included in the estimation of the LTV ratio for the loan portion above 75% of the contract price, in an amount not more than:
1. Up to 100% if the loan is secured by real estate¹
2. 50% if the loan is secured by a vehicle
3. 40% if the loan is secured by property, plant and equipment and working assets but not more than 30% of the value of aggregate pledge
4. 80% if the loan is secured by metal accounts in gold with Ameriabank:
5. If the loan is secured by cash/bonds issued by Ameriabank:
-90% if currency of the collateral is the same as of the loan
-70% if currencies of the collateral and the loan are different

Age of vehicles to be pledged

Max 12 years for foreign brand vehicles other than vehicles made in Russia, China and Iran, in which case max age is 8 years

Required additional security

Personal guarantees by founders/beneficial owners of business

Additional security

The Bank may request pledge of assets if financing up to 75% of the contract price in which case LTV ratio is not defined.

Insurance of pledged property

Insurance of property

The insurance of the pledged real estate is to be obtained only if it is or will be used for business purposes.
The insurance of real estate, vehicles and plant and equipment is maintained throughout the loan term:
1. If by the Client: at least for the amount of the outstanding principal/credit limit
2. If obtained by the bank: to the extent of the outstanding principal/credit limit.
• In case of financing for purchase of solar power plants and water heating systems, the insurance should be obtained within 10 days upon installation of power plants/water heating systems.
The following vehicles are not subject to insurance:
• Vehicles transporting hazardous materials (toxic substances, chemicals, radioactive and explosive materials)
• Vehicles to be used in races, test drives; vehicles which have three wheels, snow removers, motorcycles, special purpose vehicles
 • Taxis and rental cars

Loan service fees**

Modification of the loan terms

AMD 25,000

Substitution of pledged property (for real estate; including change of the property owner)

AMD 20,000

Substitution of pledged property (for vehicles; including change of the owner of the pledged vehicles)

AMD 10,000

Provision of pledge-related consents, permissions and references

AMD 10,000 (VAT included)

Change of the loan repayment date

AMD 10,000

Other fees payable by client

1. Fee for the unified statement from the State Committee of the Real Estate Cadaster adjunct to the RA Government; fee for police reference on vehicles encumbrance
2. Notary fee for registration of pledged real estate; fee for state registration of the bank’s security interest under the real estate pledge agreement; Fee for the certificate of registration of the security interest in the vehicle

Early repayment

N/a

Late payment fines and penalties

The interest rate specified in the loan agreement shall continue to be applied to overdue loans.
Fine in the amount of 0.13 % of overdue loan/interest for each day beyond terms

 *There may be deviations from the benchmark indicator based on the financed business's specifics, if the business is profitable but no own resources are required due to the business specifics.
No creditworthiness ratios are calculated and no business analysis and proof of income are required for loans secured by cash and metal accounts in gold.

**The fee is charged if the modification is requested by client. Where there are several applicable fees for the same modification, the highest fee is charged and only once. Fees are not applicable in case of loans secured by cash, bonds and metal accounts. If the modification implies adding new pledge or involving a new guarantor, no fee is charged

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Required documents filed together with loan application:

  • Loan application
  • Passports (original) (for private entrepreneurs)
  • TIN certificate, state registration certificate (for corporate applicants, information on the executive body is required)
  • Charter (for corporate applicants)
  • Copies of the passports and social security cards of the shareholders and CEO/President (for corporate applicants)


Documents required after initial approval:

  • Copies of the state registration certificates and the inserts of the Borrower and legal entities and private entrepreneurs affiliated with the Borrower
  • Financial statements for the latest reporting period, certified by the tax authority
  • For the recent reporting year (for those filing the balance sheet and the statement of comprehensive income); for the recent reporting quarter (for fixed and/or simplified tax payers)
  • Copy of the certificate of title or the document certifying the right to lease the premises used as place of business
  • Sale/supply agreements, orders, invoices, other documents supporting the normal process of sales
  • Licenses, certificates and other documents required for business operation (copies)
  • Documents certifying title to the assets (real estate and/or movable property) to be pledged
  • Geodetic measurement report of land plot to be pledged
  • Tax clearance certificate
  • Initial report on appraisal of real estate/vehicle


Documents required after loan approval:

  • Copies of bases of title to real estate (to be submitted upon request)
  • Passports of the owners of the property to be pledged (copy of the spouse death certificate)
  • Bases of title to real estate
  • Copy of the marriage (divorce, spouse death) certificate
  • Statement from the State Committee of Real Estate Cadaster on encumbrance of real estate (unified statement)
  • Statement, issued by the Police, on encumbrance of vehicle
  • Pledged property appraisal report (final)
  • Real estate/vehicle insurance agreement (as required)
  • Approval of the authorized body of corporate applicant to execute loan and pledge-related transactions
  • Reference on registered shareholders/stockholders/founders, director and the latest amendments to the charter (for corporate applicants)
  • Environmental impact assessment report, technical safety report, examination reports, feasibility studies (whenever required), etc., required under the applicable Armenian laws and regulations and/or the bank’s bylaws and regulations (if the company’s activity is associated with high environmental risks)
  • Other documents as the bank's specialist may request

Acting in accordance with the Republic of Armenia Law “On Combating Money Laundering and Terrorism Financing” Bank may request you to provide additional information and documents for customer due diligence based on the “Know your customer” principle, as well as ask you additional questions during verbal communication (if required so).

Old terms

Last updated on 22.03.2022, 10:08