Factoring is the type of banking service aimed at financing economic entities — suppliers — clients against their transfer to the Bank the right to receive payment on their accepted but not repaid money claims for delivered goods, executed works or rendered services, without the right to recourse.

Factoring operations are implemented based on the Provision «On the Order of Execution of Factoring Operations by the Commercial Banks in the Territory of the Republic of Uzbekistan» (registered by MOJ of the RUz, № 953 of 3.08.2000).

The execution periods of money claims by the payer to the Bank after its rendering of the factoring services must not exceed 90 days. The Bank renders factoring services on export operations only to those enterprises and organizations that are served by the Bank and have the foreign currency demand deposit account; factoring period must not exceed 60 days.

Absence of overdue credit arrears with the payer is a compulsory condition for getting factoring services. Factoring services on export operations are compulsorily preconditioned by the absence of overdue debit arrears with the supplier-enterprise for earlier registered export contracts concluded by the supplier with the respective foreign partner.

The Bank does not carry out factoring operations in the following cases:

• On claims to budgetary organizations;
• On the debt liabilities of natural entities;
• On the liabilities of the enterprises declared insolvent;
• For loss-bearing enterprises;
• For enterprises having illiquid balance;
• Financing capital investments;
• Export consignment contracts;
• Compensation and barter deals;
• Stage-by-stage advance or down-payment of work;
• Sales contracts when the payer has the right to return the produce during the period preconditioned by the agreement, and in case of post-sale maintenance.