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Factoring is a unique product that helps to solve a lot of financial problems and to significantly advance and strengthen in the market to a potential customer (Supplier). Factoring from Bank is a comprehensive service for your business, which includes:

  • Prompt decision-making on financing without collateral and a basic package of documents
  • Financing under the assignment of the right of a monetary claim
  • Administrative management of accounts receivable
  • Consulting services

Scheme of Factoring

  • Delivery of goods on deferred payment terms
  • Assignment of the right to claim a debt for delivery to the Bank. Submission of original documents to the Bank confirming the origin of the rights of a monetary claim
  • Payment of the initial payment (up to 80% of the claim amount)
  • Payment to the Bank by the Buyer of the delivered goods (works performed, services rendered)
  • Payment of final payment

Advantages of factoring for the Supplier (Client):

  • the possibility of financing working capital without collateral
  • transformation of accounts receivable into “live” money
  • liquidation of cash gaps
  • acceleration of the turnover of funds
  • the possibility of providing Buyers with more favorable terms of payment
  • increasing the number of potential buyers
  • a significant increase in sales volumes
  • improvement of the Buyers’ payment discipline
  • reducing the risks associated with late payment
  • grace period up to 30 days for deferred payment under supply contracts

Advantages of factoring for Buyers:

  • Receipt from the Supplier of goods / works / services with deferred payment (commodity credit)
  • Increase in the volume of purchases without raising additional capital

The Supplier (Customer) must meet the following requirements:

  • Have experience in the market for at least 12 months
  • To carry out regular deliveries of products / performance of works / services on a deferred payment basis
  • Work with regular customers
  • Have a satisfactory financial condition


Open factoring with recourse – The debtor is notified (by giving him a written notice) that the agreement takes part. The factor and the debtor should send payments under the Contract to the Factor account. The factoring invoices are effective there.

Regression – the bank’s right to return the company’s unpaid receivables to the enterprise. In the event of non-payment by the debtor, upon the expiry of the Waiting Period, the Customer undertakes to repay the cash received from the Bank.

Closed factoring with recourse – the Customer is not notified of the signing of the factoring agreement; he continues to make payments to the Client.

At the same time, for the purposes of factoring services, a separate account is opened to the Client, to which payments are made via the Contact. This account is prescribed in the Supply Contract.

Open factoring without recourse – financing under the assignment of the right of a monetary claim with the Factor assuming the risk of the debtor failing to fulfill its obligations under the Contract for payment of monetary claims (provided to customers on special terms).

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