EN

Factoring is an assignment of receivables by the Supplier of goods / works accomplished / services provided against the Buyer 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 powe.

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 detail.

Factoring financing scheme
Supplier effects goods supply/works accomplishing/services provision
Supplier effects goods supply/works accomplishing/services provision
Factor (OTP Bank) provides financing in the amount of not more than 70% of the assigned receivables
Factor (OTP Bank) provides financing in the amount of not more than 70% of the assigned receivables
Buyer pays in favor of OTP Bank (Factor) at the date of planned maturity
Buyer pays in favor of OTP Bank (Factor) at the date of planned maturity
OTP Bank (Factor) transfers the difference between the nominal value of receivables (invoice) and the amount of financing provided to the Supplier.
OTP Bank (Factor) transfers the difference between the nominal value of receivables (invoice) and the amount of financing provided to the Supplier
Principal Advantages of Factoring
  • Non-collateral working capital financing
  • Transformation of account receivables into cash
  • Liquidation of financial gaps
  • Speeding-up of money turnover / cash cycle
  • Possibility of providing more preferable payment conditions to the Buyers
  • Extending number of potential buyers
  • Substantial increase in sales
  • Better payment discipline of buyers
  • Decreasing payment default risks
  • Obtain goods/works/services from Supplier with deferred payment (trade/commodity loan)
  • Increase in purchase volumes without additional working capital injection
Standard terms of financing
Minimum amount of limit – UAH 4 000 000
Minimum amount of limit – UAH 4 000 000
Tenor of limit ‐ 1-3 years
Tenor of limit – 1-3 years
Currency of factoring ‐ UAH
Currency of factoring – UAH
Advance payment - up to 80% of the invoice amount
Advance payment – up to 80% of the invoice amount
Financing of existing, but not overdue account receivables
Financing of existing, but not overdue account receivables
Deferment period – from 14 to 120 calendar days
Deferment period – from 14 to 120 calendar days
Requirements to Suppliers (Clients) for factoring
  • Market presence at least for 2 years
  • Regular goods supplies/works execution/service provisioning with the deferred payment conditions
  • Dealing with regular and steady customers
  • Acceptable for OTP Bank financial standing
Requirements to Suppliers (Clients) for factoring

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