A new level of factoring: Xalq Banki offers an online solution for businesses in Uzbekistan
On 3 October 2024 Xalq Banki (People's Bank) joined the OZ PLANET digital platform, giving Uzbek companies online access to the factoring programs of one of the country's leading banks.
Factoring gives companies of any size a unique opportunity to receive financing right after shipment. Xalq Banki has added factoring to its services to help small and medium-sized businesses. With this tool, small companies can quickly replenish working capital without interrupting business processes. Joining OZ PLANET automates the factoring process, reducing paperwork and administrative costs.
Alexander Bogdanov, director of OZ PLANET, comments: "Factoring is available to companies in any industry that sell goods and services on deferred-payment terms. This financial tool speeds up the turnover of a company's funds. And the faster revenue turns over, the more opportunities a company has to grow. With factoring, the supplier gets its money earlier than stated in the contract, while the buyer keeps the same deferred-payment terms. In this way, factoring improves companies' financial stability and supports their development. Electronic technology has made factoring convenient and fast. On our digital platform, a company submits an application, signs documents with the other parties to the factoring agreement and receives financing within 24 hours, with full transparency at every stage of the deal."
Xalq Banki (People's Bank of the Republic of Uzbekistan) was established in 1995 through the transformation of Uzsberbank, the successor to the Uzbek branch of the USSR Sberbank. Its shareholders are the Fund for Reconstruction and Development of Uzbekistan (70.11%) and the Ministry of Economy and Finance (29.89%).
The bank has the largest branch network in the country, with about 200 regional and city branches, and is responsible for paying pensions to the country's senior citizens.
The bank's corporate loan portfolio consists mainly of medium-term loans for purchasing and importing equipment and for working capital. Retail loans are mainly unsecured consumer loans.
People's Bank of the Republic of Uzbekistan ranked 19th in the Forbes ranking "50 Reliable Banks of Neighboring Countries 2023".
