Factoring

What you need to know?

Factoring will provide you with an immediate cash injection by releasing funds blocked in unpaid invoices.
KUKE Finance offers financing of domestic and foreign receivables under all factoring types available on the market, with a particular emphasis on full factoring, i.e. assuming the risk of counterparty insolvency.
Our service can improve the liquidity of your company; you will save time and reduce costs related to receivables management.

Factoring will allow you to free yourself from labour-intensive and burdensome activities related to monitoring and enforcing receivables collection. These tasks will be taken over by the factor and you can concentrate on your core business.

You will also increase the security of your cooperation with customers. In the case of full factoring, the factor will assume the risk of insolvency.

It is worth remembering that factoring is an easily accessible form of financing. Compared to traditional forms such as working capital loans, factoring does not require the company to provide material security. There are also flexible procedures for granting funding and fast access to cash.

Factoring does not pose a burden on the company's balance sheet unlike, for example, a working capital loan (this applies to full factoring). It allows you to grow the competitiveness of your business – you can offer your customers longer payment terms while maintaining optimal liquidity.

What requirements do you need to meet?

This service is addressed at entrepreneurs interested in a comprehensive receivables management package, including financing, administration, monitoring and collection of receivables, as well as protection against the risk of counterparty insolvency.

Factoring is used in all industries and market segments. The factoring service is an optimal solution for companies which:

• need a flexible source of funding adjusted to current needs;
• apply deferred payment terms (trade credit);
• conduct cyclical sales to a regular group of customers;
• are looking for sources of financing for their current operations other than working capital loans;
• want to reduce the risk of customers' insolvency;
• want to improve or maintain the payment discipline of their contractors.

How to use the product?

1. Sale of goods or services and invoice issue.
   You deliver goods to a counterparty or provide a service to a counterparty. Then you issue an invoice with a deferred payment date and send information about the issued invoice to KUKE Finance.
2. Cash payment and monitoring of receivables.
   Immediately after the receivables have been recorded, KUKE Finance pays you an advance of up to 90% of the gross invoice value. At this stage KUKE Finance does not charge any operating fee. The receivables are monitored by KUKE Finance until they have been repaid.
3. Payment from the counterparty and settlement of receivables.
   The counterparty makes payments to KUKE Finance, which pays you the remaining part of the receivables.
4. Calculation of factoring costs.
   KUKE Finance does not deduct costs related to the performance of the contract from your factoring account. Fees are calculated on the basis of a separate invoice with a payment term of 14 days.

Additional information

Please visit our website or contact our consultants: (22) 233 07 08, [email protected]