What sort of information is evaluated for launching a factoring relationship?

In order to start a factoring relationship, recent economic and financial data of the seller are evaluated along with company’s area of activity, the industry sector and the quality of factorable buyers’ portfolio. Moreover, we do assess the distribution of buyers and their transactional performance according to seller’s ledger. Finally, buyer’s transactional data in our records is taken under consideration.

How does factoring affect our relationship to existing buyers?

Taken into account that credit policy between seller and buyer is consistent to the commercial agreement, the relationship with is neither modified nor suspended. Factor has a supplementary role and does not replace the seller.

Should I assign all my customers’ invoices?

In order to achieve the proper monitoring of receivables and transactions between the seller and its buyers and to make immediate action to resolve and settle possible problems that may arise, the seller is required to assign to the factor all its receivables against the factored buyers.

How fast will I receive funding?

Once the notification disclosure of receivables assignments from the seller to the buyer takes place and there are no buyer’s objections raised, financing is immediately realized. Funding process is usually executed on next of notification of receivables business day basis.

What does the process of assignment notification look like?

The factor provides the seller with the type of factoring notification to be delivered to the buyers informing them for the launch of factoring agreement. Factor also notifies buyers respectively.

Who is liable for non-payment of the assigned receivables?

In case of Factoring with recourse agreements, the seller is liable against the Factor for the payment of the assigned invoices. In no recourse Factoring agreements Factor bears the entire credit risk of buyer up to credit risk limit and a credit limit protection percentage.

What are the necessary resources in terms of human effort to keep up with a Factoring agreement?

Account management procedure is simple activity since all information is available online (through the online application e-factoring that is free of charge by the National Bank’s environment); thus, the engagement time is minimal. What is crucial for an efficient relationship is the seller to regular report Factor with assigned receivables.