Factoring is a way for a business to quickly get paid for delivered goods or completed services without waiting for the customer to settle the invoice.

Imagine you sell goods with a 30-day payment term. Instead of waiting a whole month to receive the money, you hand over the invoice to the bank. The bank immediately pays you a large portion of the amount (up to 100%) and later collects the payment from your customer within the agreed term. This process is called assignment of receivables.

Factoring is a type of financing where the business receives money from the bank right after shipment or service delivery — without having to wait for the client’s payment.

Why it’s convenient:

• No need to apply for a loan or wait for funds
• The client gets an installment plan, and you receive the money immediately;

Thus, factoring helps accelerate cash flow, improve delivery planning, and reduce risks related to delayed customer payments.

• You deliver goods to the client with deferred payment terms
• You submit the invoice to the bank
• The bank pays you up to 100% of the invoice amount
• The client later transfers the full payment to the bank

Not exactly. Let’s say you own a business and sell goods or services. Your client wants to buy with deferred payment terms. But you prefer to get paid immediately. You approach the bank.

After checking your contract and documents, the bank transfers up to 100% of the total receivable to your account. In exchange, you assign the right to collect the payment from your client to the bank. If the bank covers only part of the contract, once the client pays the full invoice, the remaining balance is transferred to you.

• Borrower’s application for factoring services, signed by an authorized representative, submitted to the Bank either in paper form or electronically via factoring platforms.
• Resolution on the appointment of the director, order of appointment of the chief accountant, and copies of their identification documents.
• Decision of the Borrower’s authorized body approving the use of factoring.
• Cash flow forecast and financial statements for the latest reporting period (Form No. 1 and Form No. 2).
• Breakdown of accounts receivable, accounts payable, and fixed assets as of the latest reporting date.
• Identity document of the founder
• Company charter
• Minutes of the meeting on the election of the executive body
• Minutes of the founders’ meeting (on the decision to obtain factoring services)

It’s the amount your clients owe you for goods already delivered or services already rendered.

From 50 million UZS — up to 100% of the invoice amount. If the bank covers only part of the contract, the remaining balance is paid to you immediately after your client settles the outstanding amount.