Purchase of Receivables - Factoring

About Factoring

Factoring is a legal transaction in which the entity performing factoring services (the factor) purchases the subject of factoring arising from a legal transaction of the sale of goods or provision of services, concluded between the creditor of the receivable and the debtor of the receivable. The subject of factoring is any existing or future, total or partial, not yet due short-term monetary receivable that has arisen based on the underlying transaction. A future receivable is a receivable that does not exist at the time of concluding the factoring agreement, but is determinable at that moment, and the debtor of the receivable is known.

Factoring represents the existing and future receivables of the client for delivered or contracted goods, services performed for the debtor and other receivables for which there is an unambiguous obligation of payment by the debtor. The purchase of receivables is considered the purchase of receivables of banks and other legal and natural persons, except for receivables acquired that regulate factoring transactions.

The stated receivables may be assigned to the factor up to the amount of the defined assignment/financing limit, during the validity of the Factoring Agreement.

The Bank approves:
1. Domestic factoring – purchase of receivables with recourse
2. Domestic factoring – purchase of receivables without recourse
3. International factoring – purchase of receivables with recourse
4. International factoring – purchase of receivables without recourse5. Reverse factoring – purchase of receivables