Are you considering using factoring as a form of financing and you would like to know how much it costs?
The price of factoring is derived from the anticipated annual turnover of assigned receivables, the amount and creditworthiness of customers included in factoring and the payment terms.
The price of factoring comprises:
The factoring commission is charged for management of receivables covering also the cost of collection. In case of non-recourse factoring, the commission includes a fee for insurance against customers' unwillingness or inability to pay as well. Factoring commission amount depends on turnover of assigned receivables.
Interest on provided financing
We charge interest based on the daily balance of currently drawn advances. Interest rates are based on floating reference rates of the interbank market for individual currencies (most frequently PRIBOR for CZK and EURIBOR for EUR). The interest rate is usually comparable to bank interest rates for short-term loans.