How factoring services are grouped
by risk and type of transaction:
Factoring is available with recourse and without recourse, as well as domestic and international (export and import) factoring, covering both domestic and cross-border trade.
The evolution of our factoring services
"Postbank was the first bank to introduce factoring services on the Bulgarian market, back in 2004."
Since 2012, the factoring business has sat within Postbank's Corporate Transaction Banking division.
Working-capital financing
Postbank factoring provides flexible working capital financing before the receivables' due date
You obtain the working capital you need through factoring, without having to pledge tangible assets as collateral.
The financing does not add to your credit exposure, leaving room for additional bank lending and further business growth.
You gain a flexible, uncapped source of funding based on your trade receivables.
Up to 90% of the invoice value is paid out within 24 hours of receipt of the required documentation.
Credit-risk cover
Postbank provides up to 100% coverage of credit risk in transactions backed by risk coverage from Factors Chain International (FCI) and up to 90% coverage of risk in a transaction with an insurer to cover the risk of the buyer's financial incapacity (insolvency, liquidation) to pay the full invoice amount for which goods or services have been received.
If the buyer fails to fulfil their obligation to pay and no disputes arise concerning the quality, quantity of the goods or similar matters, Postbank will pay you the full amount of the agreed coverage percentage from the transferred receivable.
Advantages:
You reduce losses from poor payers.
You can enter new markets without worrying about your buyers' ability to pay.
Adapt your commercial relationships through continuous monitoring of buyers' creditworthiness.
You enhance the debt ratios on your balance sheet.
Administrative management
Postbank handles the administrative and accounting management of your buyers' accounts.
You receive regular updates on the status of your trade receivables and are fully informed about the actions of your customers.
Collection
Postbank systematically monitors due dates and regularly reminds buyers of the payments due, aligning its actions with your requirements. The collection of commercial receivables is carried out by a professional team that maintains ongoing relationships with debtors to ensure timely payments. In the event of significant delays, legal action for the collection of receivables can also be taken at your request.
Advantages:
- You are benefiting from the services of a professional debt collection team that is part of a financial institution.
- You focus on the core tasks of the company - production and sales, instead of wasting time collecting the funds owed to you for completed deliveries.
- You reduce your financial expenses through better management of the collection process, leading to faster payments from your customers.
Useful information
If you compare factoring with credit insurance and banking products, letters of credit, etc., then the costs are comparable. What is more difficult to calculate are the added benefits of our services. Access to a source of financing linked to the growth of your business can help you achieve much higher levels of revenue. Reducing the costs of administration and collection of trade receivables could be significant, as well as the benefits from lower interest expenses resulting from shorter credit periods. On the other hand, the higher coverage rate compared to traditional export insurance provides you with additional security needed to expand your exports.
In our opinion, they will welcome the idea of factoring if you explain to them that it allows them to purchase on deferred payment terms instead of prepaying or using a letter of credit or bank guarantee. An additional advantage for your foreign clients is the ability to make payments locally instead of carrying out international transfers.
Postbank is a member of Factors Chain International (FCI). This is a global network of leading factoring companies, whose common goal is to facilitate international trade through factoring and related services. Through its more than 400 FCI partners, Postbank can offer its services in over 90 countries across Europe, Southeast Asia, North and South America. More information and a full list of serviced countries can be found on the FCI website.
In addition to its membership in Factors Chain International (FCI), Postbank can offer international market coverage through leading insurers in the field of trade credit insurance. Thanks to agreements with such partners, coverage of foreign markets is practically expanded without limits.
* up to 10 years for financing under the "no payment limit" program and up to 15 years for financing under the "payment limit" program.
** After further consultation with the Bank/Service Team.
***In compliance with the overall collateral limit under the program.