Classic Factoring and Receivables Discounting (with recourse)
Improving a company’s liquidity
Improving a company’s liquidity
Under a “with 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. At the same time, the Bank retains the right to recover those receivables also from the Client (recourse to the Client) if the buyer fails to perform its payment obligations under the contract.
Factoring with recourse includes:
- Classic Factoring, which covers all receivables from a buyer that has been selected by the Client. This solution assumes the processing of receivables and control of payment dates by sending reminders to buyers. A payment is made to the Client upon receipt of the proceeds from the buyer. This solution is also available with a financing option, where the Client may use receivables financing (discounting).
- Receivables Discounting, where receivables selected by the Client are discounted without taking over the insolvency risk of the buyer.
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 liquidity of a company is improved because time to collection of receivables is shortened
- timeliness of collection of receivables from debtors and payments of own liabilities is improved
- cash flows can be planned as receivables may 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
- 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
