Factoring

  • Faster way to your money
  • Charge now, do not wait for your earnings!

 

A new service of OTP banka Srbija enabling repurchase of short-term receivables with tenor up to 180 days, for sold goods/performed service, prior to maturity.

Types of factoring that OTP banka Srbija offers to its clients

  • Domestic
  • International - export

Who is factoring for?

  • Clients in need of additional working capital and who do not want or cannot obtain it by means of loan debiting
  • Clients with concluded commercial contracts and long-term cooperation with their buyers/debtors
  • Clients – exporters who want to offer more favorable conditions of payment to their buyers than the competition

How does the factoring function?

Financing via factoring is performed by means of immediate direct disbursement onto your account of 70% - 90% of invoice value deducted for the amount of factoring interest and fee while the remaining 30% i.e. 10% of the invoice value is disbursed to your account upon maturity and when a buyer of good/service-debtor pays the entire amount of the invoice to the Bank

Who is factoring for?

  • Clients in need of additional working capital and who do not want or cannot obtain it by means of loan debiting
  • Clients with concluded commercial contracts and long-term cooperation with their buyers/debtors
  • Clients – exporters who want to offer more favorable conditions of payment to their buyers than the competition

Participants in factoring:

  • Vendor of goods/service – Client
  • OTP banka Srbija– Factor
  • Buyer of goods/service - Debtor

Advantages of factoring:

  • Financing without collateral (mortgage, pledge, banking guarantee)
  • Loan indebtedness of the client is not increased
  • Improvement of liquidity – by faster inflow of money, company’s liquidity is significantly improved
  • Increase of client’s creditworthiness, credit rating as well as cost-efficiency of operations

Factoring limit

In order to avoid conclusion of factoring contract for each business arrangement with the Bank, OTP banka Srbija offers you to contract a factoring limit that may cover several receivables you may have towards different buyers.

How to initiate factoring at OTP banka Srbija?

  • Client delivers a list of buyers via standardized Questionnaire
  • In case of positive decision, the Bank shall deliver an indicative offer with relevant terms and conditions
  • Upon signing of the Contract on Factoring, invoice repurchase may be initiated immediately

OTP banka Srbija calculates factoring services as follows:

- Factoring interest in fixed amount on monthly level calculated onto the amount of disbursed advance for the period of factoring until maturity of each individual invoice. Interest is established depending to client’s creditworthiness.

- Factoring fee is comprised of: One-off fee for processing of Factoring Application and Administrative costs per each individual invoice.

Domestic factoring

  • Questionnaire for the Client (OTP Bank form)
  • Factoring Application (OTP Bank form)
  • Invoices that are the subject of factoring
  • Delivery notes
  • Commercial contract, verified and signed by client and debtor

International factoring

  • Questionnaire for the Client (OTP Bank form)
  • Factoring Application (OTP Bank form)
  • Invoices that are the subject of factoring
  • Commercial contract, verified and signed by client and debtor
  • Delivery notes
  • Export Control Sheet
  • Unified Custom Documentation

How can OTP factoring help in business operations?

If you have quality oriented buyers to whom you sell the goods or services with deferred collection up to 180 days, then OTP factoring is the solution for your problems in the area of short-term financing. By sale of invoice to the Bank, in very short period from contract documentation signing, you shall receive, in form of advance, the cash required for duly servicing of liabilities and improvement of current liquidity.

How does OTP factoring function?

  • Client – vendor of goods/services delivers the goods to debtor – buyer and delivers the invoice.
  • Client delivers to OTP banka Srbija a copy of invoice and other documentation proving the existence of receivable.
  • After analysis of creditworthiness, the Bank and the client sign the Factoring Contract.
  • Client informs the debtor upon assigning of receivables.
  • Debtor delivers to the client signed and verified Statement.
  • OTP banka Srbija pays to the client an advance in the amount of 70% to 90% of value of invoice deducted for factoring interest.
  • Upon maturity of receivables, debtor remits the total amount of invoice onto the account of OTP banka Srbija.
  • OTP banka Srbija disburses to the client the difference of funds in the amount ranging from 30% to 10% of invoice value.

What is the advantage of OTP factoring in relation to financing via short-term loans?

  • Factoring primarily reviews the value and the quality of the client’s property (receivables), while in case of a loan the Bank reviews the client’s creditworthiness.
  • Fast cash- in of invoice improves liquidity of operations, creditworthiness and cost-efficiency of business operations.
  • Credit indebtedness of the client at the Credit Bureau in case of factoring is not increased, while only promissory notes are sufficient as collateral.