What is factoring

Factoring is a modern tool that enables effective  and flexible cash-flow management. It eliminates problems caused by delayed payments from your customers or seasonality in your sales turnover thus making your working capital flexible.


Factoring is based on assignment of short-term trade receivables. It comprises several services: financing of short-term receivables before their due date, their management and collection, and in certain forms also insurance against customers’ unwillingness or inability to pay.


How does it work? First the client assigns an invoice for delivery of goods or services issued to his customer to a factoring company. The factoring company then provides the client with pre-financing, amounting to 80% of the invoice nominal value, usually within two business days. The customer settles the invoice by due date in favour of the factoring company, which then transfers the remaining 20% of the invoice nominal value to the client. Moreover factoring company takes professional care of the client's receivables, including their management, collection, sending of reminders to customers and, if necessary, also legal collection.


Start of cooperation

To start cooperation, please contact our sales representatives or in case you are not sure whether factoring is a suitable solution for your company, fill out the factoring test to find out.


Factoring step by step

  1. Cooperation starts by conclusion of a Factoring Agreement, which includes pricing and technical conditions of a factoring service. 
  2. You as a client send your customers an Introductory Letter informing them about assignment of receivables to UniCredit Factoring and about a change of a bank account number. Customers then confirm the Introductory Letter by signing it. 
  3. In the assigned invoices you replace the existing bank account number with the one received from UniCredit Factoring.
  4. Assignment of invoices to UniCredit Factoring is processed via an electronic system which automatically creates a Notification Letter (notification of receivables' assignment) and sends it to your e-mail address. You confirm the Notification Letter and send it back to us by e-mail.
  5. You recieve the agreed pre-financing based on the assigned invoices on business day following the day of assignment. The pre-financing is usually in the amount of 80% of the invoice nominal value ( incl. VAT).
  6. After your customers settle invoices in favour of our account, we send you the remaining amount (up to 100% of the invoice face value). 


Frequently asked questions

Do I have to send you copies of all invoices?

It is not necessary to send us copies of all assigned invoices. However, we have the right to randomly check deliveries of goods and services to your customers.


How often will you send me information about customers’ payments and my financing?

You will have an online access to your factoring account via the eSaldo internet application. You can monitor payments of assigned invoices and manage your cash flow.


When do you charge the factoring commission and interest from pre-financing?

Remuneration for factoring is charged on a monthly basis. You will receive an electronic invoice, which you can either pay in favour of our account or the charged amount can be automatically deducted from your next pre-financing.