Pre-procurement financing
Pre-procurement financing is a service that provides an opportunity for the Bank to finance goods and services on the basis of a contract or purchase order, taking into account the monetary claims of the Seller to the Buyer in the future.
• The buyer orders goods or services on the terms agreed with the Supplier
• The Supplier applies to the Bank with the documents confirming the contract and the order
• The Bank transfers 80% of the purchase order to the Supplier's account
• The Buyer makes a payment
• The Buyer transfers 100% of the value of the sent goods to the Supplier's account
Benefits
• No need to request advance payment from Buyer
• An opportunity to direct working capital to current contingencies
• An ability to offer more competitive products, conduct business or provide services with pre-purchased funds
• An opportunity to reduce currency, liquidity and inflation risks of accounts receivable
• Cash flow planning opportunity
• Increase of profitability
Terms of Pre-procurement financing
| Indicators | Terms |
|---|---|
| Amount of funding | Up to 80% of the purchase order or contract |
| Interest rate | Starting 14% in AZN and 8% in USD |
| Limit | 12 months |
| Guarantee | Not required |
| Comission | 1% |
Online application for the financing of trade operations
You can apply to any branch or department of Kapital Bank or order online for the financing of the trade operations.
