Non-recourse domestic factoring is purchasing, financing and management of the Client’s receivables including covering of the insolvency risk of the buyers.
The Factor (Pekao Faktoring) takes over the risk of buyer insolvency up to the amount of the advance paid for the financed invoice. This means that if the receivable (existing and undisputable) is not repaid by the buyer, the Client retains the advance payment received.
The vast majority of the buyers covered by factoring make payments on time or with little delay. The effectiveness of measures to disciplines debtors is also high. This proves that with non-recourse factoring the Client can feel comfortable.
The service is provided on the basis of receivables insurance policy of the Client or Pekao Faktoring. There is a possibility to cover up to 95% of the gross value of the receivables.
Recourse domestic factoring is purchasing, financing and management of the Cilent’s receivables without covering the insolvency risk of the buyer.
As part of this service, the Factor (Pekao Faktoring) provides its Clients with a steady flow of funds along with their sales. In case of non-payment of an invoice by the buyer on the agreed date under the invoice maturity date, the Client returns to Pekao Faktoring the advance paid on the invoice and Pekao Faktoring, at the request of the Client, will pursue repayment from the buyer, to the extent agreed with the Client – conducts debt collection.
Pekao Faktoring experience shows that the majority of buyers pay on time or with little delay when they are under factoring contract as they are aware that payments are monitored by Pekao Faktoring. The improvement in the collection of receivables is also the result of the high efficiency of our monitoring of receivables and possible debt collection actions.