The factoring service is provided by Pekao Faktoring to entities operating in the market for at least 24 months – in selected cases with proper structuring of the transactions, this period can be shorter.
Granting a factoring limit is an easy and smooth process. It begins with a contact with a Relationship Manager of Pekao Faktoring, whose role is to help adjust the service to the Client’s needs and optimally prepare the transaction. The Relationship Manager assists in completing the appropriate documents required in the process of assessing the risk of the transaction, as well as concluding the agreement and launching the financing.
When applying for a factoring limit, you will need to provide, among other things, financial statements covering two years of annual data and the most recent quarterly data. Information on the counterparties dedicated to factoring and the terms and history of cooperation with them, including possible commercial agreements and sample transaction documents or settlement history will be needed. Confirmation of lack of arrears to the Social Security Administration and the Tax Office will also be necessary before the start of financing.
The subject of factoring can be unmatured trade receivables, domestic or foreign, arising from the sale of goods or services, undisputable, not being subject to collateral and not burdened by third-party rights.
In addition to financing, factoring is also the administration of receivables. The process will be effective if the entire turnover of the factoring counterparty is reported. However, it is not necessary that all invoices reported to Pekao Factoring be financed.
There are no restrictions on the minimum as well as maximum amount of the invoice. Any invoice, regardless of its value, can be a source of financing received.
Pekao Factoring does not request permission for assignment of receivables from the buyer. This is the Client’s (supplier’s) responsibility applicable only if the commercial contract linking the Client and the counterparty contains provisions prohibiting assignment.
You can submit new buyers during the term of the agreement, as well as make changes to the limits for the buyers included in the factoring agreement, without the need to annex the factoring agreement.
The essence of factoring is to back the transaction on a portfolio of constant group of buyers, characterized by regular payments. Therefore creditworthiness of the Customer has secondary meaning.
The recourse factoring is a type of factoring where the risk of the buyer’s insolvency is on the Client.
If the debtor has not paid the amount due after payment term, the Client will be obliged to return the advance payment received from the Factor related to unpaid invoice.
In non-recourse factoring, in case of receivable non-payment by the debtor, funds paid to the Customer are not returnable.
Factoring services are primarily intended for those companies that commonly use deferred payment terms when dealing with their business partners.
Thanks to the factoring service, they obtain funds for current expenses before the payment date set on the invoice, without burdening their creditworthiness or pledging assets to secure financing. Factoring can also be used as a tool to extend payment terms for counterparties when the market situation requires it.
In Pekao Factoring, we focus great importance to the service of our Clients and make every effort to ensure that it is at the highest level. Support and day-to-day service for each Customer is provided by dedicated and specialized Pekao Factoring employees. These are mainly employees from the Customer Relationship Maintenance Department, but also Analysts and Experts, who settle transactions. On the IT side, we provide our Clients with communication through a web application, which allows both the quick import of a large amount of invoice data and the generation of statements as well as accounting reports for any day of the year.