Factoring is a financial instrument that provides for the assignment of receivables to the Bank and ensures:
Effective management of receivables (the Bank performs the functions of debt control, documentation accounting, legal support, control of debtors' payment discipline and reporting)
Flexible financing terms and transparent pricing (without collateral and hidden fees)
Quick access to the resource by converting unpaid invoices into cash.
How does factoring work?
A company using factoring transfers its unpaid invoices to the Bank in exchange for a certain percentage of their value. The bank disburses these funds to the client, covering the client's working capital needs to support its operations and increase the volume of deliveries and the number of potential buyers.
In the event of late payment by a debtor under an agreement concluded with a customer, the Bank grants debtors an additional 30 calendar days' grace period to fulfil their obligations
Advantages of factoring
- Facilitation of financial flows: Factoring allows companies to quickly access cash, ensuring a steady flow of capital in the business.
- Reducing the risk of non-payment: The bank assumes the risk of non-payment by clients, which allows companies to avoid problems associated with non-payment of invoices.
- Increased liquidity: Quick access to cash allows companies to meet their current financial needs, such as paying suppliers or salaries.
- Financial flexibility: Factoring does not require guarantees or assets as collateral, making it accessible even to companies with limited credit ratings.
Open recourse factoring
Transaction currency
National currency
Term of the agreement
12 months
Term of deferred payment
Up to 90 (ninety) calendar days
Operation amount
- The minimum funding limit is UAH 300,000.00
- The maximum funding limit is UAH 5,000,000.00 *
* within the framework of one assigned right of claim may not exceed 80% of the amount of the assigned right of claim
Interest rate
Fixed
- 0.00% (zero per cent) per annum - set from the date of disbursement of the loan and is valid for the period of deferred payment until the start of the Additional Term;
- 25% (twenty-five) per annum - set from the date of commencement of the Additional Term and valid until the debt is fully repaid.
Commission
- Commission for setting a credit limit within the framework of factoring with recourse - one-time, 0.1% of the amount of the factoring financing limit, but not less than UAH 1,500.00 (excluding VAT).
- Commission for provision of financing (credit) within the framework of factoring with recourse - a one-time commission, calculated as a percentage of the amount of the Invoice and the amount of the Advance (excluding VAT).
