Supply Chain Credit Line

Service condition

Suppliers requirements
Supplier fee	1% per revenue stream/ incoming transaction
Loan Term	Up to 24 months, aligned with the maximum contract term for the bank’s partnership with suppliers
Other conditions	Only income from approved buyers using the credit line will be accepted

Buyers requirements
Credit line amount	MNT 100.0million
Loan Terms	12 months
Interest rate (monthly)	2.00 %
Grace period	Up to 45days
Payment due date	Fifteenth on every month
Mandatory payment	20% of the total utilized credit line
Collateral Requirements	Up to MNT 50 Million: Can be secured using inventory or account income. Over MNT 50 Million: Requires additional real estate collateral.
Others Conditions	Only income from approved buyers using the credit line will be accepted

Requirement

For Suppliers:

Must be a legal entity registered in Mongolia with a strong market reputation, operating as a productive and profitable supplier or trading business.
Must have at least two years of stable business operations.
Must have been profitable for the past two years, with no overdue loans or non-performing credit history with any banks or non-bank financial institutions.
Must hold an account with the bank, ensuring all sales income and receivables are processed through it.
For suppliers of imported goods, details of the country of manufacture and supplier company must be provided. Exporting companies must not be listed on international sanction lists.
Must meet other requirements imposed by the bank.

For Buyers:

Must have been in partnership with the supplier for at least one year.
Must be listed as a buyer recommended by the supplier.
Must have no overdue loans or non-performing credit history with any banks or non-bank financial institutions.
Sales income must be processed through the bank account.
Board Resolution authorizing the loan and collateral (shareholder resolution required if no Board exists)

Required document

For suppliers

For Buyers

For Individuals:

Organizations:

Loan application (Form 069)
State registration certificate, company charter (notarized)
Board resolution authorizing the loan and collateral /if no Board, shareholder resolution required Verified bank account statements for the past year
Business activity photos to confirm operations

Recommendations

A loan product designed to finance working capital by secured of business receivables.

Credit and credit line products for suppliers of Oyu Tolgoi LLC.

It is a loan to be paid on future income that is regulated by a supply contract between a government orgazination or private entity and the borrower.