FACTORING

EximBank as member of Factors Chain International may finance partially/totally, with or without recourse to exporters, the commercial invoices related to export activity, issued in the framework of a commercial contract/agreement/confirmed order with deferred payment, for covering the temporary lack of cash between the invoicing date and the due date of payment. ADVANTAGES No administration fee Financing up to 100% of the nominal value of the invoice Services at international standards – EximBank is member of Factors Chain International No collaterals requested Immediate Financing - upon signing the factoring agreement payment is performed no later than 24 hours after the invoices are being presented. Payment of receivables before maturity - deferred payment becomes payment at sight Flexibility in funding usage – funds may be used as needed Access to information related to potential partners through the foreign factoring agency Minimal documentation as compared with the one required for granting a loan 2 FACTORING

FEATURES Factoring operations: WITH RECOURSE - incurs the take over of the adherent’s residual risk (the exporter) and the right of EximBank to recover the financed amounts should the respective sums have not been received from the external debtor at maturity date, whatever the reason might be. WITHOUT RECOURSE – incurs the take over of the external debtor’s risk (the importer), the risk being completely covered by the import factor or an insurance company/ bank. Financing of the commercial receivables based on invoices related to goods/services delivered to external markets may be granted as: Individual operation Factoring limit with multiple drawings (revolving). Financing period of maximum 270 days from the invoicing date 3 FACTORING

4 FACTORING - PROCESS EXPORTER IMPORTER IMPORT FACTOR EXPORT FACTOR Delivery goods/services Collection /Payment Invoice details Invoices Payment

CASE STUDY Exporter SRL has concluded a commercial contract with Importer LTD from UK and requests from EximBank an without recourse factoring financing through an import factor, amounting at Euro 2 Million. Exporter SRL fills in the Factoring Form Request and presents to the bank the related documents EximBank requests to the Import Factor in UK an approval for the factoring limit/ credit assessment of Euro 2 Million Import Factor communicates the approval on the factoring limit/ credit assessment and the respective fee EximBank sends the indicative offer to Exporter SRL communicating the following: Approved factoring limitEuro Grace period10 days Financing percent85% of the nominal value of the presented invoices Factoring fee 1% of the nominal value of the invoices Operation interest EURIBOR 6M + 4,5% (risk margin) Exporter SRL accepts the terms of the indicative offer and signs the factoring contract 5 FACTORING

CASE STUDY- follow up EximBank notifies Importer LTD the assignment of the commercial contract Exporter SRL presents at October 9, 2013, invoices for financing amounting at Euro having the payment term on December 2, 2013 and for which EximBank establishes: Financing value Euro (Euro x 85%) Non-financed value EUR (Euro euro x 15%) Payment term + Grace periodDecember 12, 2013 (December days) No. of financing days64 days Factoring fee + VATEuro Interest + VATEuro 4.081,09 Amount paid by Exporter SRL at latest October 10th Euro ,91 Cash-in on 2nd of December, 2013, in the EximBank account of the assigned invoices : Euro Release of the non-financed amount in the account of Exporter SRL : Euro FACTORING

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