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Modified Factoring

What is MODIFIED FACTORING?

Modified factoring provides more developed versions of standard factoring products which better adapt to specific client characteristics and needs.

Balance Factoring

Balance Factoring is a product developed for clients who work with assets and liabilities structure, or with the company’s balance sheet. It applies to situation when by assigning accounts receivable to a Factor the volume of accounts receivable decreases or their structure improves. Funds provided by factoring company do not increase client’s exposure and do not increase external sources volume. On the contrary, together with accelerated cash flow they allow overall indebtedness decrease provided they are used to repay the bank credits or liabilities of the company.

This way enables stable decrease of overall company indebtedness and credit sources dependency as well as positive modification of Return on Assets (ROA) indicator.

Reverse Factoring

Reverse Factoring is a product supporting business cooperation between companies of different sizes and different financial streght. Trade risk is shared between the supplier and the buyer, which is positive feature for the Factor who provides funding of accounts receivable to the suppliers. This product is ussually used in case of one big solvent buyer for various smaller suppliers.

It concerns situations when the buyer deals with supplier’s accounts receivable towards factoring company and thus helps him to obtain working capital while he can manage his financial flow in the period of months due to deferred supplier’s invoices maturity.

Small Business Factoring

Small business factoring is basically focused on clients with lower turnover (approximately up to 30 million CZK per annum) with regular deliveries to selected buyers in lower volumes. This modification is accompanied by a lower range of required information and documentation.


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