Factoring for your business
Collateral is not required
Factoring is a convenient financial instrument, processing requires minimal amount of documentsFast consideration
From a single working day with minimal document package
What is factoring
How factoring works?
- 1Supplier and Customer concluded a supply contract
- 2Supplier fulfilled the contract and signed closing documents with the Customer
- 3Supplier receives payment from the Factor the day of signing closing documents
- 4Customer pays the amount to the Factor for provided service/supplied goods
Factoring from TEK-Torg for suppliers and customers
Recourse factoring
Supplier accepts the risk of non-payment: if the Customer don’t pay for supply, the Supplier returns funds to the FactorPros:
- lower fee
Cons:
- no protection from non-payment risk
Where applies: for contracts with reliable, verified or major Customers
Non-recourse factoring
Non-payment risks are accepted by the Factor: if the Supplier don’t make payment for the supply, the factor manages debt itselfPros:
- there is a protection from the risk of non-payment
Cons:
- the fee is higher
Where applies: for contracts with new/unknown customers or when there are doubts in its solvency
Closed factoring
Supplier gets financing not notifying Customer. Notification of assignment is signed only by the Factor and the SupplierPros:
- financing is faster since it isn’t necessary to expect customer’s approval
- ability to obtain funds in case of customer refusal of factoring
Cons:
- fee is higher
- requirement to use nominal account
Where applies: in case the process of signing at the Customer is long and complex and in case of refusal by the Customer from factoring scheme
Factoring for marketplaces sellers
Pros:
- without collateral
- quick financing issue
- repayment on schedule from marketplaces income
- revolving limit with increase capability
Cons:
- costlier than classic factoring
- work experience and marketplace statistics required
When applies: for increase of sales/assortment and increase of procurement through accelerated replenishment of working funds
Procurement factoring
When payment for goods and services is required for fulfillment of its ordersPros:
- more procurement, more suppliers
Cons:
- fee is higher
Where applied: for advance payment or whole payment to supplier, payments to foreign suppliers, supply volume increase and attracting new contractors
How to get factoring
- Apply onlineIt'll require minimal document package, the rest will be done by your personal manager
- Choose financing termsGet offers from several Factors with favorable terms and choose the best option
- Obtain financing
We will help to obtain a factoring on favorable terms
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Why suppliers prefer apply for factoring on TEK-Torg
0% commission
We help to obtain factoring on favorable terms and don’t charge fees for our servicesReliability
TEK-Torg is a federal electronic platform, one of the biggest ETP’s in Russia by the volume of published proceduresAssistance with application process
TEK-Torg experts will prepare and fill out all the necessary documents and applications for you. You’ll only need to sign the application onlineEverything is online
We arrange factoring in all regions digitallyCost-effective offers
TEK-Torg partners are always ready to consider individual requests and terms on factoringSpeed
Consideration from a single working day with minimal document package