Domestic factoring

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

Advantages

• 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.

Conditions

• The term of factoring agreement is 12 months with an option to renew;
• Security:
  
  • 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.

Interest rates