Factoring (without recourse)
Under a without-recourse Factoring scheme, Bank Handlowy w Warszawie S.A., operating under the Citi Handlowy brand, becomes the owner of assigned receivables, i.e. it has the right to receive payments from buyers.
As compared with recourse Factoring, the Bank takes over the risk of non-payment generated by buyers. In the event that a buyer fails to pay for received goods, the Bank will not ask the Client to repay the debt.
Product highlights
- the Bank takes over the risk of non-payment generated by buyers
- the financial condition of the Client is not reviewed
- the buyer is required to accept liabilities to be paid
- discount up to 100% of trade receivables in domestic transactions
- financing until the invoice payment date
- the solution used may be tailored to the Client’s needs subject to applicable laws and banking regulations
- receivables discount requests can be sent via an electronic banking platform
- access to receivables payment reports via an electronic banking platform
- the maximum financial commitment of the Bank under a specific factoring scheme is determined by the limit granted, which is renewable
- we offer Factoring without recourse to Clients whether or not they have a current account and a credit facility with the Bank
The detailed requirements, the terms and conditions of the product and the risks it may generate will be presented to the Client at the sales stage.
Are you interested in our offer?
Please contact your Relationship Manager. Detailed information can be also obtained from:
Agnieszka Malik-Śmiech
Tel: +48 (22) 657 73 94
Fax: +48 (22) 692 21 32
The cost of the call depends on your local service provider.
Advantages:
- the Bank actually takes over the risk of non-payment generated by buyers
- a company’s liquidity is improved as time to payment of its receivables is reduced to a maximum of 2 days
- timeliness of collection of receivables from debtors and payments of own liabilities is improved
- cash flows can be planned as receivables can be immediately converted into cash
- access to up to date information on receivables status
- turnovers can increase without committing additional funds
- market position and competitive advantage are strengthened as longer times to payment can be offered to existing customers
- commercial offer can be enhanced as new customers can be attracted by longer payment dates
- impact of seasonal sales fluctuations on financial performance can be mitigated
- demand for other credit facilities is lowered
- receivables monitoring costs are reduced
- credit facilities granted by the Bank to the Client may be used for other transactions
- transactions can be executed on an electronic banking platform (including training)
- flexibility – the Bank is ready to perform non-standard agreements, tailored to the Client’s needs