OREANDA-NEWS. UniCredit Bank has introduced a "Factoring as a Business Growth Stimulator" programme allowing small and medium-sized businesses to get financing through factoring mechanism.

To take an advantage of this financing instrument company’s activities must meet the following requirements:

  • receivables must be generated as a result of non-cash transactions;
  • transactions must be legal and properly documented;
  • receivables must be diversified: above 3 debtors;
  • consumers should be regular and deliveries should be carried out on a regular basis;
  • debtors must not be related to client’s company.

“Factoring is an effective source of business financing regardless of a company’s creditworthiness. It can be used by any company which makes transactions with deferred payments. Today factoring is successfully used by suppliers of food, perfume and cosmetic products, household chemicals, medicines, etc. All of these areas have in common high liquidity of goods, as the demand for these products is constant and high. In general, factoring can be used in all areas where companies practice deferred payments, non-cash payments and have permanent trade contracts, – noted head of factoring and promissory notes division at UniCredit Bank Natalia Tykhovska. – The factoring scheme works like this: a company cedes receivables from the delivery of goods on a deferred payment to the bank; the latter pays client an advance, the debtor transfers funds for delivery to the bank account; finally, the bank pays the company debt balance excluding the interest for the advance and factoring fee.”

Today, UniCredit Bank offers three types of factoring services: financing, credit insurance and debt management. Customers may choose any combination of these services depending on their business needs. In each case, the bank offers individual terms, taking into account specifics of a client's business.