An indispensable financial instrument for producers and vendors, who perform trading activity on terms of postponement of payment.
Factoring is a complex of financial services that includes:
- financing of the client for replenishment of working capital under the assignment of the rights of the monetary claim under the contracts on the supply of products, goods, works, services;
- administration of client’s accounts receivable.
- financing continues as long as the vendor sells his products;
- factoring, unlike classical lending, complements working capital, and does not withdraw it;
- financing increases as sales volume grows;
- protection against financial risks - liquidity loss, credit risk, operational risks, risks associated with exchange rate changes, market value of cash resources;
- implementation of administrative management of accounts receivable (constant control of the status of accounts receivable; verification of reputation and payment discipline of the debtor; work with debtors on timely and full payment for delivery; provision of reports on the status of accounts receivable to the client.);
- conducting an assessment of the solvency of the vendor’s customers.
- Validity of the factoring contract - 12 months with the possibility of prolongation;
- guarantee of business owners and / or directors;
- goods in circulation (processing);
- property rights under contracts.
- Payment of interest - monthly, commissions - once at the time of financing.
- Commission for registration of a factoring agreement - from 2000 UAH.