Factoring represents a financing instrument aimed to replenish working assets, which allows a seller and a buyer to conclude a contract for goods supply or service provision with a payment delay or on condition of payment for the goods supplied upon their sale, thus making it possible for the seller to have advance proceeds while protecting itself against non-payment risk and securing payment collection within the term of the contract or after its expiry and having receivables accounted. Analysis of the recent years shows a clear trend of business switching from working capital loans given by banks to factoring services, due to interest rates convergence. The growing demand for factoring financing is facilitated by increasing penetration of electronic document circulation into operations of claim assignment-based financing through development of both multifactor platforms for electronic document flow and on-line market places for liability assignment.

Cost of service and financing amount depend on provisions of contract under which monetary claims are assigned, as well as on background of relationship between the parties to the contract, their solvability and reputation.

Classical factoring
is applied to finance goods seller under assignment of its liability claim towards a buyer based on package of documents to prove both the fact of goods shipment by the seller and the fact of goods delivery to the buyer.
Commodity factoring
allows sellers and buyers to conclude a contract for delivery of goods with up to 180-day payment delay, where the seller can receive up to 90% of proceeds on the day of shipment, providing for protection against non-payment risk, payment collection within the term of the contract or after its expiry and accounting of receivables.
Service factoring
allows a provider to render services to a buyer under a contract with up to 180-day payment delay and receive up to 90% of the proceeds based on job completion report signed by the service provider and consumer. Depending on contractual provisions agreed between provider and consumer, history of their relationship and reputation, the financing can be provided before the job completion report signed by both parties has been received.
Recourse factoring
a type of factoring when financing is made available on condition of joint liability of goods seller or service provider for buyer’s failure to fulfill or improper fulfillment of the monetary claim assigned. With such form of financing, when calculating funding period, a grace period of up to 60 days is included, upon expiry of which the joint liability provision comes into effect.
Non-recourse factoring
is applied when factor assumes the risk of debt non-payment. As in any other type of factoring, seller shall fulfill its obligations on goods delivery or service provision, giving the buyer a payment grace period, while having no responsibility for the buyer's failure to fulfill monetary claim it has assigned, according to Art. 827 of the Civil Code of the Russian Federation.
Notification (conventional) factoring
is a type of factoring where assignment of monetary liability claim is done by goods seller or service provider with mandatory proper notification of the buyer, who receives a prior notice of payment to be effected directly to factoring company's bank account.
Undisclosed (confidential) factoring
is applied in cases when seller is not willing to have information on its deal with factor disclosed to its clients, or when a buyer refuses to approve liability claim assignment. In such cases, payments are transferred either to the seller’s account or to a nominal bank account opened in the seller's name with the factoring company being its beneficiary. Undisclosed factoring is governed by Article 382 of the Civil Code of the Russian Federation.
Reverse factoring
is a factoring product provided under financing transaction initiated by a buyer of goods or services who is willing to obtain or extend a payment grace period.
Pre-delivery factoring
this is when a seller obtains full or partial financing under assignment of its future receivables immediately upon reaching an agreement on a supply order under a contract signed between the seller and the buyer. If only a part of financing is approved to be made available after supply order is agreed, then the remaining amount of the financing will be provided as soon as the fact of goods shipment is acknowledged.
Consignment factoring
is a type of pre-delivery factoring, which assumes that a factor makes financing available to a seller as soon as the goods have been delivered to a consignment warehouse or transferred to a buyer under a sale agreement.
Export factoring
is a kind of international factoring intended for Russian exporters of goods and services. It is only provided by our company under recourse factoring agreement.