Full factoring pertains to financing a factoree?s (supplier?s) accounts receivable while taking on the risk of default of payment.

Thanks to this service the supplier (factoree) receives an advanced payment (90% of value indicated on invoice) immediately after supplying a copy of the accounts receivable along with documents that confirm delivery of goods. The factoree receives the remaining 10% (guarantee fund) once the payment is made by the Supplier.

The service ensures stable financing for ongoing business activities even if the supplier does not pay for goods or services. The factor takes on the risk of default of payment up to the amount of the advanced payment. This means that if the supplier does not pay for goods and services, the factoree keeps the received advanced payment.

The service may include an insurance policy to secure the factoree?s accounts receivable (i.e. factoring with client?s policy) or the factor?s policy (full domestic factoring).

In the case of full factoring the risk of default of payment is covered by an insurance policy purchased by the factor.

A high amount covered by the policy ensures the clients of Pekao Factoring a sunstantial level of security.

Assuming the risk of default of payment is possible following a positive verification the recipient?s financial condition.

It is possible to implement full factoring in combination with the client?s insurance policy. The service then involves an assignment of rights from the client?s accounts receivable policy. The risk of default of payment is assumed by the factor while the extent of the advanced payment is defined by the client?s insurance policy.

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