Factoring
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.
Factoring operation scheme
- Delivery of goods (services) with deferred payment
- Submission of documents required by the factoring agreement to enable assignment of accounts receivable.
- The bank provides financing of up to 80% of the price of the delivered goods as an advance payment.
- The buyer transfers 100% of the price of the delivered goods (services) to a special account in the bank according to the schedule stipulated in the agreement on delivery.
- The bank independently credits the funds in the amount of the advance payment required to repay the receivables under the factoring transaction and transfers the balance of the funds (up to 20% of the delivery amount) to the client’s account.
Advantages of factoring by Pivdenny Bank:
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.
factoring with the right of recourse to the supplier
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.
up to 80% of the value of tax invoices transferred to factoring, including VAT
in line with the duration of the agreement, increased by the number of days of the payment deferral
residential and commercial real estate, motor transport, equipment, special equipment, goods in circulation, financial guarantee of business owners
To obtain the service: submit an application via the site. A specialist from our bank will contact you to discuss the conditions and the required documents. Alternatively, contact your personal manager.
How do I apply for a loan?
Contact your personal manager
for existing clients of the bank.