• The client submits the invoice and a signed notification to the buyer on transferring his outstanding claims.
• The client (the seller) accepts the contracted advance payment
• The factor calculates and charges the client for both the fee and the interest rate
• The buyer pays the invoice amount to the factor’s account on the day the invoice is due
• The factor pays to the client the difference between the amount financed and the amount received by the buyer

• Factoring with right of recourse to the client – in case the claim is not collected from the debtor, the factor will sell the outstanding claims to the client
• Factoring without right of recourse to the client – by buying the outstanding claims, the factor undertakes the risk of collecting payment from the debtor
• Managing outstanding claims – administration of claims (without financing)
• Supplier factoring – the factor takes on the invoices from the debtor, i.e. accepts the debtor’s obligation of paying the creditors

• Existing and future undue outstanding claims from sold products/ services with a duration of up to 180 days
• Legally sound claims, without legal burden
• Transferable claims for which there is no transfer ban

• Request processing fee – payable after the signing of the contract as the percentage of the total limit approved; it is paid annually.
• Factoring fee – calculated when the advance payment is paid as the percentage of the nominal value of the invoice being financed.
• Factoring interest rate – key interest rate + margin, calculated to the advance payment amount paid to the client for the financing period; the advance payment amount is reduced by the amount of the calculated interest rate.

• Liquidity – collecting payments for outstanding claims in a short term improves the liquidity of your company
• Factoring is not a credit – it does not increase credit indebtedness, rather, it improves the structure of the client’s balance sheet through reducing the level of outstanding claims towards buyers
• Better positioning compared to the competition – better payment terms for the client’s buyers from the terms offered by the competition – possibility of discounts for advance payment with the client’s suppliers
• Increased employee efficiency/ lower administrative costs: services of professional management of outstanding claims, book entry and follow up of due invoices by the factor, enable the client to focus the time and energy on sales growth
• Payment of outstanding claims – debtors/ buyers are more disciplined in settling their obligations when a bank is the creditor
• Cash flow can be adjusted to the level of outstanding claims – the company’s business is secured by cash tied to sales. As business volume/sales volume increases, so does the amount of financing available for the client.

Please contact your Corporate Relationship Manager or our Factoring Expert directly in the Corporate Credit Department and available at the phone numbers: +381 11/ 220 7796, +381 11/ 220 7719.

• You sign a contract with Raiffeisen banka which defines the terms of accepting your undue debts towards your suppliers as stated in the contract
• Based on the goods delivered or the services performed, the supplier issues an invoice with deferred payment, which you submit to Raiffeisen banka, together with the confirmation of payment
• The supplier and you sign a notification on accepting debt for concrete obligations
• Raiffeisen banka accepts your indebtedness after receipt of the invoice and the statement on payment of the submitted invoices
• The contracted amount of the undertaken obligations per invoice is paid onto the supplier’s account
• After the invoice is due, i.e. in the period defined in the contract, you pay the nominal invoice amount to the account of Raiffeisen banka.

• You will improve the cooperation with your suppliers through the option of paying your obligations before their due date
• You will be able to negotiate more competitive terms of purchase
• You will be able to prolong the payment period without compromising your supplier’s cash flow
• You make cooperation ties with your supplier for longer time periods.

• Improving liquidity the easy way
• Minimal business risk – option of immediate settling of outstanding claims
• Improved business conditions – option of a new, fast and simple mode of financing
• Increased creditworthiness – supplier factoring does not increase the total creditworthiness with the bank

Please contact your Corporate Relationship Manager or our Factoring Expert directly in the Corporate Credit Department and available at the phone numbers: +381 11/ 220 7796, +381 11/ 220 7719.