Factoring

A factoring transaction - is one of the forms of financing, the essence of which is the acquisition of the right to demand payment for the obligations of buyers of goods, works and services from suppliers of goods, works and services by the bank.

Basic terms and conditions:

The Amount of Financing is set by the bank based on the turnover and financial condition of the Supplier / the Buyer;
The Terms of Financing is up to 90 calendar days from the date of delivery;
The Discount Rate shall be by agreement. The discount shall be paid by the Supplier through the deducting of the corresponding amount from the amount of the assigned monetary claim by the Bank.

What kind of factoring is suitable for you?

Classical factoring - for the Supplier
Reverse factoring - for the Buyer

Transaction implementation procedure:

1. Submit a request
2. Bank employees will contact you.
3. Provide a package of documents
4. Conclude a factoring agreement
5. Get financing

Factoring transaction are not performed on the following claims:

• claims made on budgetary institutions and individuals;
• claims made on enterprises declared insolvent and/or unprofitable enterprises and/or enterprises with an illiquid balance sheet;
• claims on capital investments financing;
• claims on buy-back and barter transactions;
• contracts that provide for payment of work in stages or 100% prepayment;
• claims on contracts in which there are clauses allowing the Buyer to return the products within the agreed time or when after-sales service is provided.

Submit a request for a consultation

Classical factoring is a type of banking service for financing Suppliers against their assignment of the right to receive payment for monetary claims accepted, but unpaid by the Buyers for goods delivered, work performed or services rendered, initiated by the Supplier, to the bank.

Benefits for Supplier:

• cash gap reduction, receipt of money on the day of goods shipment;
• working capital replenishment;
• business scaling;
• you give the buyer a deferred payment option and set off yourself from your competitors.

Reverse factoring is a type of factoring in which the Buyer initiates the receipt or increase of deferred payment for goods, work, or services received. The limit of financing is set for the Buyer based on its financial condition. Suppliers disburse the limit of financing set for the Buyer, subject to the Buyer's consent to this.

Benefits of factoring for Buyer:

• Increase in the deferred payment period;
• No need to make advance payments to Suppliers;
• improvement of the reliability and timeliness of deliveries.