Possibility of permanent reduction of total company’s indebtedness as well as positive modification of Return on Assets indicator (ROA)
High percentage of pre-financing which can be up to 100% of the nominal value of receivables
Possibility to optimise a working capital and thereby obtain additional sources of funding without increasing credit exposure
Balance Factoring
Balance Factoring is a product developed for our clients who work with assets and liabilities structure, or with the company’s balance sheet. It applies to case when by assigning accounts receivable to a Factor the volume of accounts receivable decreases or their structure improves. Funds provided by factoring company do not increase client’s exposure and do not increase external sources volume. On the contrary, together with accelerated cash flow they allow overall indebtedness decrease provided they are used to repay the bank credits or liabilities of the company.
This way enables stable decrease of overall company indebtedness and credit sources dependency as well as positive modification of Return on Assets (ROA) indicator.
Reverse Factoring
Reverse factoring is a product providing solutions for the financing of a supplier-customer relationship that supports commercial cooperation between companies of various sizes or different financial strengths. In contrast to standard factoring, where the client is usually only a supplier assigning its receivables from multiple customers, in the case of reverse factoring the primary client is a large, creditworthy customer with a large quantity of suppliers, for whom, in cooperation with a factoring company, it prepares a competitively-priced option for the pre-financing of receivables. A lower price can be set in relation to the customer’s financial strength and its confirmation of the receivables assigned by a supplier; this is related to a high value of pre-financing, which can be up to 100% of the value of receivables.
Both parties to the supply chain can, thanks to the extension of the payment period of supplier invoices, optimise their working capital and thereby ensure sufficient funds for financing without increasing their credit exposure.