It is an indispensable financial instrument for producers and suppliers conducting trade on terms of payment deferment.
Factoring is a complex of financial services comprising of:
- Funding of clients to replenish current assets on terms of assignment of accounts receivables under supply agreements of different types;
- Administration of client’s debt receivable.
Currency – UAH
Amount – from UAH 100,000
Grace period – 5 to 180 days
- Funding lasts as long as the supplier sells its products;
- Factoring unlike classic crediting does not withdraw current assets, but replenish them;
- Funding grows progressively as sales increase;
- Coverage of financial risks, such as illiquidity, credit risk, operational risks, risk related to the change of exchange rate and market value of funds is provided;
- Administration of debt receivable (constant control over the debt receivable; verification of the debtor's reputation and payment discipline; dealing with debtors in terms of timely and complete payment of supplies; providing reports on debt receivable balance);
- Assessing solvency of the supplier’s clients.
- The term of factoring agreement is 12 months with an option to renew;
- Guarantee of business owners and/or director;
- Shifting stock of merchandise (goods in process);
- Property rights under the agreements.
- Interest payment – monthly, payment of commissions and fees – once, upon funding;
- Contract fee is from UAH 2,000.