Factoring

Combination of services which includes providing financing to a customer, i.e. purchase of trade debts payable to the customer where the customer transfers to the bank monetary claims against invoices issued to its Buyers for goods sold or services rendered.

More About Factoring

  • Seller

    Seller

    • A possibility to obtain funds without pledge
    • Improving the company's liquidity ratios
    • Buyers payment risk management
    • Easier planning of cash flows
    • Decrease of debt administration expenses
    • Flexibility in negotiation with buyers
  • Buyer

    Buyer

    • More extended payment terms
    • More purchasing power without an additional source of funding
    • Acquisition of new suppliers
  • Terms and Conditions

    Terms and Conditions

    •  Currency: EUR
    • Interest rate: variable
    • Loan term: up to 1 year
    • Credit Period: up to 120 days (in some cases there can be a longer period of time)
    • Factoring in advance: up to 90%
    • Collateral: trade credit insurance companies engaged in insurance, recourse to the seller, and (or) provide other collateral

  • Documents Required for Obtaining factoring

    Documents Required for Obtaining factoring

    • A filled out application to obtain Credit
    • Financial reports for the last two years (balance sheets, profit (loss) statements, and cash flow statements)
    • A list of debtors and creditors with the amounts and dates the indebtedness was formed
    • (This is a partial listing; full listing of required documents is provided at the end of the credit product application form available from the bank.)

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