National factoring

What is factoring?

Factoring is a service where our Bank finances your undue short-term monetary claims arising from the sale of goods and services on the basis of creditworthy Debtors, whether existing or future.

Who are participants in Factoring?

• Customer – Provider of goods and services who assigns its accounts receivable it has against the Debtor
• Factor – our Bank
• Debtor – Buyer of goods and services from the Customer

What are the benefits of factoring?

• No Credit Bureau – by using factoring service the credit burden is not increased, the factoring is not registered with the Credit Bureau
• Prompt invoice collection – factoring improves business liquidity, creditworthiness and solvency, as well as profit-generating potential
• Less need for loan indebtedness
• Better competitiveness
• Possibility to receive higher financing limit for factoring financing compared to the credit financing limit

What is the price of factoring?

The customer (assigner) of accounts receivable pays for all factoring expenses and they include the following:

• Factoring fee – one-off upon approval, calculated as a percentage of total invoiced amounts and collected as advance payments deductible
• Factoring interest rates – calculated on advance payment from the day of financing by the factor as of the day of collection from the debtor. It is charged by deducting interest amount from the outstanding amount of the invoice to the Customer – reserves.
• Invoice processing fee – fixed for each invoice, charged upon approval of financing as advance payment deductible.

With us you can also do:

Recourse factoring

It is a financial service where you as a buyer assign existing or future short term debt (incurred by a contract on sales of goods  or rendering service), while the Bank as factor undertakes debt. The Bank transfers funds to suppliers, and you make payment later, within the period agreed with the Bank. In this way you provide discounts and extended payment terms for your company, while your suppliers get current assets more quickly.

Supply chain financing

This is a special type of recourse factoring, which in fact represents a convenient way of financing outstanding receivables which are based on the creditworthiness of the customer.

For you as a customer this is a good option to improve your working capital, by extending payment terms to your suppliers.  On the other hand, your vendors benefit from the accelerated payment of invoices.

To make things even easier, our bank offers you a unique platform that allows you to, with direct access, easily and efficiently perform financing.