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Factoring

Factoring

Factoring services are provided by the partner of "Bank National Credit" PJSC – “Factoring Finance” JSC.


Factoring

is a set of financial services, which includes the assignment of receivables (financial deliverables) and accounting for the state of receivables, timeliness of payments of debtors to your business (administrating).

Under factoring, your company receives the following services:

  • Financing of Supply WITHOUT COLLATERAL with deferred payment
  • Reducing the risks associated with the deferral of payment:

- Risk of liquidity loss (the risk of not getting the full payment from the buyer on time);
- Interest-rate risk (the risk of sudden change in the market value of the financial resources);
- Currency risk (the risk of change of the USD-EUR exchange rate during the payment deferral period);
- Inflation risk (the funds depreciate while pending the buyer’s payment).

    Efficient work with receivables:

    • Due diligence of the payment history and business reputation of your current and prospect buyers;
    • Daily receivables monitoring;
    • Managing Receivables according to a pre-arranged with you schedule.

    The effect from factoring implementation:

    1. Transforming receivables into available cash assets;
    2. Granting preferential payment terms to buyers of goods (deferral), hence an increase in sales volume and product range, and therefore, the ability to generate additional revenue;
    3. Increased liquidity of funds gives an opportunity to receive discounts from suppliers;
    4. No additional workload for accountants;
    5. Cutting down office equipment and software expenses.

    Basic requirements of the Factoring provider (“Factoring Finance” JSC) to the company’s debtors:

    • Cooperation with the supplier for at least 3 months;
    • Positive payment history with your company;
    • Sustainable procurement of goods accounting for at least 7000 UAH a month;
    • The payment deferral period should be between 5 and 90 days.

    Factoring fees:

    The cost of factoring for a company depends on the financial standing of the borrower, the number of debtors involved in factoring, payment deferral timeframes for procurement agreements, and other factors. The cost is comprised of two factors:

    • Financing rates – starting at 25% annual interest rate;
    • Administration charges – starting at 0.5 – 1.5% of the face value of consignment.