Receivables financing

Do you wish to increase your company’s liquidity otherwise than by taking a loan? Do you wish to offer longer maturity periods to your customers? Or do you simply wish to reduce the volume of receivables on your balance sheet? UniCredit Bank has extensive experience with purchases of both local and foreign receivables.

By purchasing your receivables, UniCredit Bank can provide you with an alternative access to financial funds. Thus, you will not only get cash without having to apply for a loan, but you will also strengthen your credibility and respect of your business partners.

What is the purpose of purchasing your receivables?

  • Improving your competitiveness in obtaining orders. With us, you can provide your customer with extended maturity periods on your invoice.
  • Extending the payment terms to customers without a threat to your cash flow.
  • Obtaining financial funds immediately after your goods or services are delivered, i.e. even before your invoices are due.
  • Eliminating the risk of the customer’s default (non-recourse receivable).
  • Reducing the volume of receivables on your balance sheet, and thus improving your company’s creditworthiness.
  • Obtaining financial funds when you are unable to meet the conditions to get a loan.

What can we do for you?

  • We will purchase your local and foreign receivables in form of invoices, bills of exchange, documentary letters of credit, etc.  
  • We will pay to you up to 100% of the value of your receivables.
  • For receivables from foreign customers, we will hedge the currency risks.
  • We will arrange insurance on the receivable against the risk of the customer’s default.
  • Over the entire financing period we guarantee a fixed, pre-established interest rate.

Receivables can be purchased

Without recourse (forfeit)

UniCredit Bank accepts the risk of non-payment of the receivable by the customer and you are not liable for payment of the receivable.

With recourse (discount)

The bank has the right to request that you return the financial funds provided to you, if the customer fails to settle the receivable, i.e., you are liable for payment of the receivable.

Factoring

Security for trade receivables arising from supplied goods or services with maturity period being, as a rule, less than 90 days.

More details about factoring