Export factoring is a complex cash flow improvement financial service. Cash flow can seriously be affected by deferred payment sales to foreign customers.

 

Our export factoring services comprise the following:

  • protection against bankruptcy or low payment discipline of your customers (up to 100% coverage of your receivables)
  • smooth settlement of your invoices (receivables) issued to approved customers
  • advance payments of up to 90% of invoiced amount
  • payments in CZK or convertible currencies to your CZK or foreign currency bank accounts, based on your choice
  • management and collection of your receivables
  • eFactoring – Internet application providing you with on-line access to up-to-date information


How does export factoring work?

 

Traditional Export Factoring diagram

 

Service charges

Factoring service charges vary following the scope of provided services. Basically, the charges consist of two items:

  • Factoring fee - cost of processing of your sales and cost of insolvency protection. This fee normally varies between 0.3 and 1.5% of receivable nominal value.
  • Interest rate - standard interest rate of retail banks on short term loans.