When is the commission resulting from a factoring agreement debited?

The bank charges the commission/fee on the day of document transfer.

When is the fee for changing the terms of the factoring agreement due?

The change fee for the terms of the agreement is charged on the day the changes take effect.

Receivables financing

Factoring

A range of financial services, which includes transferring receivables to the bank by the company for sales, accounting for receivables and monitoring timely collection of amounts due (administration).

A range of financial services to free up funds from receivables. Receivables and invoices for realised sales are transferred to the bank, which supports receivables accounting and monitors the timeliness of payments.

Factoring is helpful for:

Suppliers of products, where goods are supplied first and the contract allows the buyer to defer payment. In order to free up working capital, the supplier allows the bank to claim the receivables from the buyer. Up to 80% of the receivables can be financed in this way.

Advantages of factoring by Pivdenny Bank:

Advantages for suppliers:

Increase the number of potential buyers and, thus turnover by providing buyers with a delay in payment
Streamline cash flows and accounting.
Turn over accounting and control over timely repayment of receivables to the bank.

For buyers:

.Defer payment to the supplier, allowing you to sell the goods/services to the ‘end-user’.
Using a trade loan, which eliminates the need for bank loans.
Increase your purchase volume with deferred payments.

Principal terms and conditions

Interest rate

is determined individually.
It is possible to set a fixed or floating interest rate.
A fixed interest rate is determined for every client individually.
A total floating interest rate consists of two parts:
- The NBU rate – a variable rate set according to the current NBU rate;
- complementary value – a fixed rate, which is determined for every client individually.

Disbursement fee

0.5 % of the established limit/factoring payment (or according to the terms of a factoring agreement)

Loan collateral

residential and commercial real estate, motor transport, equipment, special equipment, goods in circulation, financial guarantee of business owners

Type of factoring

factoring with the right of recourse to the supplier

Size of the advance payment

up to 80 % of the value of tax invoices transferred to factoring, including VAT

Duration of the factoring agreement

in line with the duration of the agreement, increased by the number of days of the payment deferral

Changes to the terms of agreement

0.5 % of the established limit to extend the duration of the agreement (or according to the terms of a factoring agreement)
0.1 % of the established limit for any changes, other than extension, initiated by the client (or according to the terms of a factoring agreement)

FAQ

Documents

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