Factoring

Flexible form of trade receivables financing with optional protection against insolvency of customers.

Quick access to funds

Receive 70 to 90% of financed receivables

Offer better commercial terms to your customers

Monitor the status of your receivables online

FACTORING IS SUITABLE FOR

Companies and sole traders who supply goods or provide services to regular customers on a regular basis

Factoring is financing of trade receivables – optionally with protection against customers’ insolvency
Administration and collection of short-term receivables with a deferred maturity of up to 90 days
Standard financing between 70 and 90% of invoiced amount, in exceptional cases up to 100%
Draw funds based on the total value of deliveries
With factoring, you can offer your customers more attractive commercial terms, thereby promoting the competitiveness of your company
Select at least three domestic and/or foreign customers with a total annual turnover of no less than CZK 10 million for the purpose of factoring

Factoring facilitates electronic communication with a factoring company, enabling online:

Immediate access to funds

Improve your company’s liquidity
Flexible financing instrument based on the value of deliveries
Receive payment immediately after you deliver goods or provide services
Equivalent to short-term loan
Payments from the customer received within 60 days from maturity will be reported to the client; however, no interest as sanctions or penalties is charged
No need for the client to recover debts from its customers

Higher competitiveness

With factoring, you can offer longer maturity to your customers, up to 90 days as a standard and 120 days in exceptional cases
Optional open trading account for your trade partners
No need to apply for a letter of credit, and you still receive protection against your customers’ insolvency
Clients only need a commercial contract with customers, comprising basic information about the transaction/delivery and standard documents relating to such delivery

Factoring costs

One-off factoring fee and interest on pre-financing are charged for factoring services
Cost of factoring can be partially included in the prices of deliveries
Client in fact provides its customers with supplier credit

This product is intended for companies and sole traders who supply goods or provide services to regular customers on a regular basis.

Factoring is not suitable for: