Best solution

to grow your business
  • - Greater liquidity
  • - Better competitiveness
  • - Up to 90% of the invoice value
  • - Lower risk of exchange rate fluctuations
Send application

Best solution

to grow your business
  • - Greater liquidity
  • - Better competitiveness
  • - Up to 90% of the invoice value
  • - Lower risk of exchange rate fluctuations
Send application

What is factoring?

1
The client – the seller of goods/services − sells and delivers the goods/services to the debtor – the buyer − and submits an invoice
2
The client sends a copy of the invoice and other documentation to API Bank proving the existence of receivables
3
API Bank pays a deposit to the client in the amount of 70 to 90% of the invoice value minus factoring interest
4
After maturity, the debtor pays the total amount of the invoice to the account of API Bank
5
API Bank pays the client a difference of funds in the amount of 30% to 10% of the invoice value
Who can benefit from factoring?
All companies with existing commercial contracts and long-term business cooperation with their clients, when they have the need for additional working capital or an intention to increase their sales volume.

Why do companies need factoring?

Seller
  • Quick replenishment of working capital
  • Competitive advantage in deferred payments
  • Increased number of shipments and sales growth
  • Additional source of funding
Buyer
  • Procurement growth
  • Comfortable payment terms for the purchased goods
  • Expansion of product range
  • Increased sales volume
Required documents
  • Client questionnaire (API Bank form)
  • Request for purchase of short-term receivables (API Bank form)
  • Purchase invoices
  • Commercial contract, certified and signed by the client and the debtor
  • Dispatch notes
  • Export control
  • Customs documents
  • Customer’s signed and sealed consent

How to get started with factoring at API Bank?

  • Submit a list of customers through the standard Questionnaire
  • In case of positive approval, API Bank will submit an offer with the relevant conditions
  • When the Contract on the purchase of receivables is signed, the invoice can be paid immediately

API Bank calculates the monthly interest in the form of a fixed amount for factoring services, calculated on the amount of advance payment for the period of factoring up to the maturity of each individual invoice. The interest rate is determined depending on the client’s creditworthiness.

The factoring fee includes a one-off fee for processing of requests for the purchase of short-term receivables and administrative costs for each individual invoice.