Factoring is an assignment by the supplier of crop protection chemicals/ mineral fertilizers/ seeding/ fuel/grain of receivables against the Buyer for the supplied goods to OTP Bank (Factor).
Factoring is a unique product created to solve various economic and financial tasks as well as to promote the Client’s business and enhance the market power.
OTP Bank provides factoring with recourse on the domestic market of Ukraine. Supplier undertakes to buy back payment demand, if the Debtor fails to fulfill its payment obligation in favor of the Factor. At the same time, Buyer is notified, that OTP Bank (Factor) right of payment demand assigned to OTP Bank (Factor), and effects payments according to the required account details.
Factoring financing scheme
1. Supplier effects goods supply.
2. Factor (OTP Bank) provides financing in the amount of not more than 70% of the assigned receivables.
3. Buyer pays in favor of OTP Bank (Factor) at the date of planned maturity.
4. OTP Bank (Factor) transfers the difference between the nominal value of receivables (invoice) and the amount of financing provided to the Supplier.
Basic conditions of financing:
Maximum limit amount for the one Supplier: UAH 2 000 000.
Advance payment: up to 70% of the supplies amount.
Tenor of financing:
- a general tenor of the limit: 1 year;
- deferment period: up to 180 calendar days.
Currency of financing: UAH.
- interest rate: fixed for UAH;
- factoring commission: up to 1.25% of the shipment value (invoice amount)
- Organization fee: 2%.
Possible collateral (or its combination): financial surety of the borrower`s owners.
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