More about factoring
- A possibility to obtain funds without pledge
- Improving the company's liquidity ratios
- Buyers payment risk management
- Easier planning of cash flows
- Decrease of debt administration expenses
- Flexibility in negotiation with buyers
- More extended payment terms
- More purchasing power without an additional source of funding
- Acquisition of new suppliers
Terms and conditions
Terms and conditions
- Currency: €
- Interest rate: according to risk assessment
- Agreement term: up to 1 year
- Payment term for the buyer: up to 90 days (longer on agreement)
- Invoice processing fee: 0,1 – 0,7% of the value of the invoice
- Advance payment: up to 90% of the value of the invoice
- Agreement fee: up to 1% of the limit (min €175) + VAT
- Fee for purchaser’s risk limit query in the case of factoring with insurance:
EU purchasers €25 + VAT, plus €5 per quarter + VAT
Other countries: €40 + VAT plus €7.50 per quarter + VAT
- Collateral: trade credit insurance companies engaged in insurance, recourse to the seller, and (or) provide other collateral
- Factoring application
- The audited annual report of the previous year and quarterly financial statements of the current year
Additional documents are requested by the bank if necessary.
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Documentary collection is a method of payment commonly used in foreign trade transactions in addition to letters of credit and open accounts. A collection transaction involves the purchaser's bank handing over commercial documents to the purchaser in exchange for a payment, a fixed-term payment obligation or a bill of exchange as laid down in the collection terms and conditions.
The documentary credit is one of the safest payment methods used in international trade. It helps to manage risks related to foreign trade, be it imports or exports. It is generally used for long-distance transactions or when the purchaser and seller of the goods do not know each other well and need a trustworthy intermediary to complete the transaction.
Guarantees help to control and manage risks arising from business activity. Guarantees aim to offer the holder a sense of security and financial compensation if their contractual partner fails to fulfil their obligations.