Factoring as a way of financing in business. Factoring as a way of financing the activities of organizations

Factoring like many others financial instruments came to Russia from the West. This English word factoring comes from factor (factor) - commission agent, agent, intermediary, and means the redemption of the receivables of the Supplier of goods (services) with the assumption of obligations to collect them and the risk of non-payment. The supplier sells receivables (accounts receivable), that is, the amounts that buyers owe to the firm, a specialized financial institution-factoring company, which in turn is called the Factor. The difference between the Factor and other agents, for example, from the assignee, is that he takes possession of the debt, that is, the Supplier loses ownership of the receivables.

The economic side of factoring is manifested in the fact that it allows you to increase the liquidity of the company's assets, as well as the turnover of capital and thus the profitability of entrepreneurs. The greatest relevance, according to Western experts, is for small and medium-sized enterprises. The use of factoring in many cases allows enterprises to reduce the cost of maintaining special financial services by increasing the efficiency of financial services through the transfer of these functions to specialized companies, where such activities, as a rule, are more efficient due to high degree rationalization.

If we evaluate factoring in terms of the opportunities it opens up, then in the present conditions factoring in a broad sense is considered to be an important tool for modern management, especially in relation to financing and enterprise management, as well as risk management.

In countries with developed market economy and financial infrastructure factoring companies or engaged in this activity commercial banks offer their customers a wide range of financial services, stipulating this by the transfer of their monetary claims by the latter.

Today, factoring is predominantly defined as legal relationship between a financial agent (factor) and an enterprise selling goods or services (the “client”), according to which the factor buys the client’s receivables (with or without the right to reclaim the client) and, in connection with this debt, controls the loans provided, and also carries out accounting of the client's trading operations. Thus, factoring has the following main functions:

1) conducting relevant accounting operations;

2) control over the provided commercial credit, including the receipt of payments;

3) protection against credit risks (in the case of factoring "without turnover");

4) financing of the client's current activities.

1. Types of factoring

Factoring is a type of trade and commission operation, which includes the collection of receivables, lending working capital, guarantees of credit and currency risks, as well as information, insurance, accounting, consulting and legal support of the Supplier.

Depending on the availability of the Supplier's financing function, factoring services are divided into:

· Factoring with payment (with service factoring), which includes the collection of debt, the assumption of the risk of non-payment and the transfer of funds as they are paid by the Buyer. In Russian practice, this is called administrative management. accounts receivable. In this case, the Factor's commission is about 0.5-1% of the amount of the assigned receivables. The amount of the commission varies from the total debt of the Supplier, decreasing with its growth;

Factoring with payment and financing (with service plus finance factoring) includes payment to the Supplier immediately after delivery of goods up to 90% of their selling price, if there are invoices accepted by the Buyer. The balance is paid after the debt is repaid. In this case, the Factor sets the risk reward for advance payment (0.5-1.2% of the debt amount) depending on the total number of debtors transferred to factoring services. With an increase in the number of debtors, the risks of the Factor are eroded and the commission is reduced. The Supplier also pays the Factor a fee for the use of monetary resources, which is several points higher than the credit rate. The amount of this fee depends on the turnover period of the Supplier's accounts receivable. In Russia, Factor usually requires the submission of original documents for the delivery (invoice and consignment note), charging a small commission (about 50-70 rubles per invoice) for registering these documents. In Western practice, such a component of the commission also exists, but often the Supplier sends an electronic file to the factoring company containing a sales book for certain period, original documents on deliveries are provided later.

There are usually three parties involved in internal factoring transactions: the Supplier, the Buyer and the Factor. In this case, the factoring scheme looks quite simple:

2. Assignment of the right to claim the debt for delivery to the Bank.

3. Payment of early payment (up to 8 0% from the amount of the delivered goods) immediately after delivery.

4. Payment for delivered goods.

5. Payment of the balance of funds (from 10% , after payment by the buyer) minus the commission.

2.Analysis of the solvency of the buyer

When purchasing invoices, the factoring company analyzes the solvency and good faith of the Buyer, because the risks of the Factor associated with non-payment of invoices relate specifically to the Buyer, and not to the Supplier. Of course, the Factor checks the Supplier as well, as there is a risk of providing them with forged documents on deliveries, which may entail financial losses for the Factor. In order to avoid the appearance of “bad debts”, the Factor may refuse to purchase some accounts or debts of individual Buyers, or offer an agreement to purchase receivables with the right of recourse, that is, a claim back against the Supplier. This agreement specifies the term of the recourse, to which debts it applies, in what period and how its execution takes place. In Russia, recourse usually occurs 30 days after the expiration of the deferred payment, but the Supplier has the opportunity, with the consent of the Factor, to extend the deferred payment if the Buyer has objective difficulties. The presence of a regression does not reduce the risks of the Factor to zero, but only reduces them. When factoring with recourse, the Factor does not take credit risk, that is, the risk of the Buyer's non-payment in general, but takes the liquid risk-the risk of non-payment on time, which happens much more often. Russian buyers do not have a clear payment discipline. Buyer's payment 3-5 days after the expiration of the grace period is common practice.

It should be noted that the fact that the Factor has the right of recourse against the Supplier somewhat reduces the cost of factoring services for it (by approximately 15-20%), therefore it makes sense for the Supplier to assign with the right of recourse the receivables of reliable Buyers who have a good and long-standing credit history thereby reducing their costs for factoring services.

Factoring is a combination of a supplier's credit with a commission service consisting in the acceptance of credit risks by the factoring firm. In this case, the factor firm assumes the obligation to receive unpaid debts. The factor firm is usually associated with the bank (is its subsidiary).

In Russian conditions, specialized departments of banks are engaged in factoring operations.

The factoring operation scheme consists of two parts (Fig. 1.1):

1) payment by the factor firm of 80-90% of the contract amount;

2) payment of the balance of the contract minus commissions (including risk premium) after settlements with buyers.

Rice.

Factoring is a young but growing branch of the global financial industry. It originated in the 60s, but by now the world turnover of factoring operations has reached 395 billion dollars. Its main goal is to maintain the liquidity of supplier enterprises; scope - short-term contracts for small amounts for the purchase of equipment, concluded in the field of medium and small businesses. Khromov M.Yu. "Accounts receivable. Return, management, factoring. - St. Petersburg. Peter, 2008. - p. 252.

The essence of factoring is the provision by the bank of financial resources and services to trading, manufacturing and service companies (hereinafter referred to as suppliers): covering a number of risks that occur in the trading operations of companies, managing receivables, consulting, information and analytical services.

Let's take a closer look at the financing mechanism for factoring. After delivery of the goods to the debtor, the supplier submits the invoice to the bank and immediately receives a significant part, up to 90% of the delivery amount, in the form of an advance, without waiting for payment from his buyer. The balance of funds for deliveries (minus the bank's commission) are credited to the supplier's settlement account as they are actually paid by buyers to the bank's factoring account. Those. in this case, the bank acts as a person advancing the commodity credit provided by the supplier to the buyer with the subsequent return to him of the balance of the delivery amount.

The supplier gets the opportunity to plan his financial flows regardless of the payment discipline of the buyers, being confident in the unconditional receipt of funds from the bank against accepted shipping documents for deliveries with deferred payment. Often trade turnover supplier is limited only due to the fact that the buyer is not able to pay for a larger volume of purchases without having sufficient working capital, and the supplier, accordingly, does not have the working capital necessary to provide or increase the commodity credit to the buyer. This form of factoring allows the supplier to offer its customers a commodity credit, limited only by the buyer's marketing capabilities.

The difference between factoring financing and other banking products. Sometimes they try to compare factoring with a loan, although factoring and a bank loan are of a different nature and are aimed at meeting different needs of suppliers. A loan is characterized by urgency, which implies its repayment after a certain period of time. Thus, a bank loan is absolutely unacceptable for financing deliveries with deferred payment. If the six-month loan is used to finance shipments of goods with deferred payment, how will the company's working conditions change in the situation of repaying the commodity loan, and what will happen if the supplier fails to receive new loan after its redemption. Today in Russia, most loans are issued for up to a year, which leads to such situations. Factoring is currently the only perpetual liability in Russian economy and allows you to plan a development program for many years to come.

Another feature of the loan is the need to provide collateral to obtain it. The fundamental difference factoring and credit lies in the fact that the loan is focused on the success of the company in the past, on the assets that were earned yesterday, while factoring is focused on future success in sales, and even if sales grow 5 times, this will not be a limitation for financing in factoring. A more detailed comparison of factoring financing with other loan products is presented in Table 1.1.

Table 1.1. The difference between factoring financing and others loan products Balabanov, I.T. Basics financial management. - M.: Finance and statistics, 2007.- p.234.

In addition to working capital financing, factoring provides the supplier with the following range of services:

Insurance of risks associated with deferred payment.

By concluding a factoring agreement, companies get the opportunity to eliminate the risks associated with the supply of goods on credit: the risk of not receiving payment from the buyer on time; the risk of non-payment for the goods; risk of sudden change market value monetary resources; the risk of changes in the dollar exchange rate during the grace period for delivery.

Efficient work with accounts receivable.

Starting to work with a factoring company, the supplier has an independent controller, which allows you to reduce losses from sales on credit to a minimum. The organization of sales of products, in which the sales manager is responsible for both sales and the timely receipt of money to the current account, contains a contradiction. Accordingly, by transferring the functions of control over payments to a factoring company, the supplier gets the opportunity independent control for the state of its receivables and can focus on the main tasks of the business: production and sales of products. The question is natural: will the factoring company spoil the relationship between the supplier and the buyer? Practice shows that those buyers who are initially set up to deceive the supplier refuse to switch to factoring services, the same buyers who pay for their deliveries in accordance with the contractual terms, in most cases, do not notice the presence of a factoring company.

Thus, the administration of receivables includes:

Checking the payment discipline and business reputation of existing and potential buyers of the supplier;

· daily monitoring of the state of receivables;

Buyer debt management

· setting and updating financing limits for debtors (recommended shipping limits).

Information and analytical service involves daily traffic reporting Money, analytics on the status of receivables (shipments, payments, etc.), integration with accounting systems companies.

The financial mechanism of factoring provides suppliers with fundamentally different opportunities for their development than those that a supplier that independently services a commodity credit has. Funding in factoring, unlike equity and credit, is not limited to any amounts (Fig. 1.2). Orekhov S.A., Factoring. Corporate finance management. - M.: Publishing house "Company Sputnik +", 2006. - p.326.

Rice. 1.2. Possibilities of financing sales with factoring compared to a loan and own working capital

Suppose a supplier company starts a credit program for its customers. The initial analysis revealed the need to invest 10 million rubles in a commodity loan. However, the company has own funds in the amount of 3 million rubles and can attract a loan for the same amount. Accordingly, 4 million rubles remain unfunded, and the supplier will be forced to limit sales on credit. In the case of using factoring, the total burden on working capital would be no more than 10% of the volume of trade credit (subject to receipt of 90% of the Factor), i.e. the amount of 1 million rubles, which could be covered from own sources. The rest of the funds would be financed by a factoring company, which would allow maintaining the product range and balances, and making new shipments without experiencing a shortage of funds.

In our country today, factoring is most common in such sectors of the economy as the production and distribution of food products, pharmaceutical products, consumer goods, alcoholic beverages, printing and packaging products, cosmetics and perfumery products, and others.

The main clients are companies with the volume of assigned receivables from 3 to 30 million rubles. per month, with the number of regular customers from 10 or more, with such delivery conditions as deferred payment from 20 to 90 days, cashless payments, transfer of ownership at the time of shipment.

To start work, the supplier should submit to the bank a list of documents with information on the company's activities, basic data on customers and the history of relationships with them. The bank analyzes the documents and makes a decision to start work. The parties enter into a factoring agreement, the supplier submits documents reflecting his contractual relationship with buyers and documents for specific shipments. Funding begins.

Table 1.2 shows the benefits of factoring for the supplier and buyer.

Typically, suppliers turn to factoring companies for three reasons: lack of cash, building sales on credit, and risk insurance.

Table 1.2. Benefits of factoring for the supplier and the buyer

From the point of view of funds, factoring solves such problems as:

Expanding the company's market share. The supplier has the opportunity to attract new customers, increase the range of goods in stock and, as a result, increase turnover and profit.

Increasing the liquidity of receivables. The supplier receives the money immediately after the shipment of goods with a deferred payment. The funding paid out automatically increases as sales grow.

Elimination of cash gaps. Accurate planning of cash receipts and repayment of own debt. The supplier can build a payment plan for factoring financing “for his company”: receive money exactly on the day when he needs it and exactly in the amount that is required at the moment.

Timely payment of taxes. According to chapter 25 tax code RF payment of taxes should be carried out upon the shipment of goods and services. Receiving financing within the framework of factoring services on the day of shipment of the goods, the supplier will not be bothered by “settlements” with the state. The supplier company receives a guarantee of protection against penalties from creditors (including government agencies) in case of untimely settlements with them, caused by a cash gap. Additional feature is to receive funding by the date of tax payments.

Timely payment of contracts. Reducing the terms of deferred payment for the purchase of goods leads to better price conditions for the purchased goods and an increase in the amount of commodity loans received from own suppliers.

AT commercial aspect The effectiveness of factoring is expressed in the fact that the bank provides assistance in terms of credit management. The Bank controls the timeliness of payment for deliveries by buyers, checks the payment discipline and business reputation of buyers, and effectively manages receivables. As part of factoring, the bank allows the client to manage their risks, avoid shipments to unscrupulous buyers, and competently build a limit and tariff policy in the implementation of commodity lending.

In addition, with factoring services, the supplier is protected from a lot of risks. It's about, first of all, about credit risk, i.e. non-payment of the delivery by the buyer at all, the risk of liquidity disruption, i.e. the risk of late payment and currency risk (the risk of a change in the exchange rate, for example, of the dollar during the period of deferral of payment for delivery).

Factoring is a financial service system, commission and intermediary services provided by the client's factoring company related to working capital lending.

The purpose of factoring is to accelerate the turnover of working capital and strengthen payment discipline in the economy.

There are 3 parties involved in factoring transactions:

1. Intermediary factor (bank or specialized factoring company);

2. Supplier;

3. Buyer.

Historically, the first arose conventional factoring, which is universal system financial customer service, including accounting, settlements with suppliers and buyers, insurance lending. The client retains only the production function.

Under this form of factoring, enterprises may refuse to retain their own staff of employees who perform the functions that the factoring organizer assumes. This helps to reduce production costs, but there is a risk of complete dependence of the client on the factoring company.

Along with conventional (broad) factoring, there is confidential factoring, which is limited to performing only certain operations - assignment of the right to receive money, payment of debts, etc.

Confidential factoring is a form of providing a supplier - a factoring client with a credit for goods shipped, and a payment credit for the buyer.

Currently, the intermediary factor provides the following services to clients:

1. Acquire from supplier enterprises the right to receive payment for commodity transactions from one or a group of buyers in agreement with the seller.

The essence of this operation: the bank pays the supplier the cost products sold immediately, and then receives money from buyers, i.e. provides insurance loans.

2. Purchase receivables from suppliers for goods shipped and not paid for by buyers on time.

Conditions: payment delay no more than 3 months and upon notification from the payer's bank that the payer has not been declared insolvent.

3. Acquire bills of exchange from your clients with their immediate payment (early repayment).

Commission remuneration:

Discount = Promissory note amount – Promissory note payment amount.

The main purpose of factoring services is to finance the client's working capital (80% - 90%).

For their services, the intermediary factor takes a certain fee, which includes:

Commission remuneration;

Interest on a factoring loan, which is charged from the date of the loan until the date of receipt of funds for the shipped products from the buyer.

Credit risks.

Credit risk - the risk of default by the debtor of its obligations to the supplier of goods and services, i.e. the risk of default of the debtor.

Credit risk is the risk of losses associated with the deterioration of the condition of the debtor, counterparty to the transaction, issuer of securities.

The deterioration of the state (rating) is understood as the deterioration of the financial condition of the debtor, as well as the deterioration of business reputation, position among competitors in the region, in the industry, a decrease in the ability to successfully complete a specific project, etc., i.e. all factors that can affect the solvency of the debtor.

Losses in each case can be:

Direct - non-repayment of the loan, non-delivery of funds;

Indirect - a decrease in the value of the issuer's securities, the need to increase the volume of reserves for loans.

Credit risk assessment procedures are based on the following concepts:

1. The probability of default is the probability with which the debtor may be in a state of insolvency over a certain period of time.

3. Amount exposed to credit risk - the total amount of obligations of the debtor, counterparty to the organization, the amount of investments in securities issuer, etc.

4. Loss rate in the event of default – the proportion of the amount exposed to credit risk that could be lost in the event of a default.

Grade credit risk can be made from 2 positions: assessment of the credit risk of an individual operation and a portfolio of operations.

The basic assessment of the credit risk of an individual transaction can be made with different levels of detail:

Estimation of the amount at risk;

Assessment of the probability of default;

Estimation of expected and unexpected losses.

At classical approach to credit risk management, the coverage of expected losses is made at the expense of the formed reserves, and the coverage of unexpected losses on credit risks should be made at the expense of own funds (capital of the organization).

Credit risk management methods:

1. Formation of reserves (RC);

2. Credit risk in deferred payment transactions can be eliminated through factoring (see question no. 6).

3. Insurance of credit risk in an insurance company.

The object of insurance is the property interests of the insured associated with the possibility of losses as a result of non-fulfillment of contractual obligations by the counterparty (the insured's debtor).

An insured event for insurance of trade credits is the occurrence of losses for the insured as a result of the insolvency (bankruptcy) of the debtor; failure to fulfill obligations due to force majeure circumstances; long delay in payment by the counterparty (debtor).

Questions for self-control:

1. Functions of the loan, their characteristics. Forms and types of credit?

2. Bank loan, its characteristic. Principles bank lending?

3. Commercial loan, its features?

4. Leasing as a long-term financing tool?

5. What are the main methods of lending to legal entities?

6. What is the essence of an open credit line: renewable, non-renewable?

7. What documents are submitted to the bank when obtaining a loan legal entity?

8. What basic conditions should be provided for in loan agreement?

9. What are the main forms of loan repayment security? List the basic requirements for collateral.

10. Tell us what rights the pledgor enjoys in possession, use and disposal of property without transferring it to the pledgee.

11. How should the loan be repaid by a legal entity (frequency, procedure)?

One of the sources of financing the operating activities of the enterprise is factoring.

Factoring is a long-term agreement under which an intermediary (factor) acquires the accounts of the company's debtors, assumes the risk of non-payment on any of the accounts, and is responsible for ensuring the receipt of money for payment.

The factor also conducts a credit check on all customers. The factoring company buys from the supplier its payment documents for the amount S and thereby assumes the obligation to claim the entire amount from the buyer, taking into account the late fee. A typical scheme of factoring operations is shown in fig. 13.8.

Fig, 13.8. Factoring process:

1 - delivery of goods on credit; 2 - issuing an invoice to the buyer by the agent; 3 - payment of an advance payment (up to 80% of the principal amount); 4 - return by the buyer of money to the agent; 5 - payment to the enterprise of the remaining 20% ​​minus commission factor and interest for the loan

The differences between factoring and credit are listed in Table. 13.6.

Differences between factoring and credit

where 5 is the amount paid by the factoring firm

client; r - interest rate for operations similar in risk; T - duration of the factoring agreement.

There are two forms of factoring. According to the first of them - traditional factoring - the factor performs the function of providing money on credit, making advance payments even before the receipt of money from debtors. The factor usually pays 70-90% of the invoice amount in advance and charges interest at a rate that is 1-1.5% higher than for ordinary borrowers. The rest of the amount acts as insurance fund and is paid if the consumer enterprise fully pays the payment documents, thereby insuring the risk of the consumer's refusal to accept or bankruptcy. The amount of the advance depends on the degree of "dilution" of receivables due to the presence doubtful debts, slow turnover, etc. The share of the insurance fund can be determined as the standard deviation of the data obtained by the following formula:

where S3 is the amount spent by the bank on the acquisition of receivables; Sn - the amount received by the factor after the expiration of the factoring agreement.

According to the second form - urgent factoring - the factor does not lend money. The enterprise and the factor agree on the limits of the loan and establish a periodically updated average period for the factor to receive money from all debtors. The factor pays the company amounts based on the agreed period, regardless of whether the client has paid the factor money or not. For example, at the end of a normal 30-day period, the debtor paid only RUB 5 million. on account for total amount 10 million rubles The factor transfers the entire amount of the invoice to the enterprise, and charges interest on the remaining amount of the debt. This type of factoring allows you to insure against doubtful debts.

Through the use of factoring, a company can:

Accelerate the turnover of working capital and thereby reduce the need for financing;

Limit the amount of expenses associated with servicing loans, collecting receivables and its accounting;

Protect yourself from doubtful debtors.

The main benefits of factoring are listed in

tab. 13.7.

Factoring Benefits

The main component of the factoring effect is the receipt of money immediately after the shipment of products, and these funds - own funds enterprises, not loans.

Issues for discussion

1. What is the difference between different types of working capital management policies? At what stages life cycle Can one or another type of working capital management policy be used?

2. What factors influence the company's need for working capital? How can the influence of these factors be taken into account when managing working capital?

3. What cash flows arise in the provision of discounts to companies? How can you calculate the feasibility of discounts?

4. What tools can be used to manage receivables? I I

In most industries, factoring can be used as a source of financing for the enterprise. After all, for suppliers - this is a way to get rid of the lack of working capital and cash gaps, and for buyers - the ability to defer payment for the required time.

Most often, as the main source of financing for the activities of the enterprise, commercial loan, better known as deferred payment. But by providing such a loan, many suppliers are faced with a lack of working capital and cash gaps. For buyers, the main problem is the inability to defer payment for the time they need. Here one can consider factoring as a source of financing for the enterprise.

The classic product provides for the financing of the supplier against the assignment of claims to the buyer for the supply of goods (works, services) with a deferred payment. The main goal for the supplier in this case is to obtain financing in order to be able to provide commercial credit to its customers. If the buyer is interested in receiving a reprieve from the seller, he can use a reverse service called purchasing (reverse) factoring.

The interaction of the parties when using purchasing factoring consists of several stages.

1. A tripartite agreement is concluded between the factor, the seller and the buyer.
2. The supplier ships the goods (or provides services) to the buyer in accordance with the supply contract.
3. The assignment by the supplier of the rights of monetary claims to the factor and the transfer to it of shipping documents confirming the fact of delivery or provision of services.
4. The factor pays the supplier financing in the amount of 100 percent of the delivery amount.
5. After the expiration of the period specified in the contract, the buyer pays the factor full cost goods (works, services).

Factoring and its financial features

Under a purchasing factoring agreement, the supplier receives 100% financing (with classical factoring, financing does not exceed 90%) without the right of recourse, that is, if the buyer fails to pay, the factor cannot file a claim against the supplier. Such a factoring scheme provides protection against the risk of non-payments, they remain with the factor. Suppliers working with this counterparty can join the work under a purchasing factoring agreement under a simplified scheme.

If the supplier does not need to replenish working capital immediately after delivery, he can use the payment guarantee from the factor. The funds will be paid exactly on the day the deferral ends, which will allow the company not to disrupt its financial cycle and at the same time not overpay for the attracted financing.

The most important advantage of reverse factoring for the buyer is the ability to receive from the factor a deferred payment in excess of that provided by the supplier. Another plus is that a tripartite agreement allows you to share costs with him in any convenient proportion, depending on who is more interested in receiving factoring services.

How to calculate the cost of factoring services

The factoring service fee can be distributed between the supplier and the buyer, for example, according to the following principle: the commission for the first 60 days of the delay is paid by the supplier, and for the subsequent period - by the buyer. This possibility is all the more relevant, since factoring services are by no means cheap.

The cost of factoring services includes several types of commissions:

• for the processing of documents confirming the fact of delivery or provision of services. This is usually a fixed amount;
• for the administration of accounts receivable. Charged as a percentage of the amount of ceded claims;
• for the provision of funds within the framework of factoring services. Calculated as a percentage of the amount of funding provided for each day the funds are used;
• for an additional deferred payment. Paid by the buyer in the amount of a percentage of the amount of the current debt on the assigned monetary claim for each additional day of delay.

The cost of factoring services is also affected by the individual parameters of the transaction, such as the period of use by the buyer of an additional deferment, the amount of monthly repaid debt, financial condition organizations. For large and reliable companies that act as buyers in a reverse factoring transaction, the conditions will be more favorable than for small supplier companies in recourse factoring. Reverse factoring rate range for Russian market quite wide and today is from 18 to 24 percent per annum, which is much more than for loans.

The effectiveness of factoring in the enterprise

To evaluate the effectiveness of reverse factoring, calculate the cost of covering cash gaps, the cost of deferred payment from suppliers. Determine the optimal payment grace period and compare with the current one. It is better to work out the reverse factoring scheme with the main supplier, and then offer it to other counterparties.

The factoring mechanism as a method of financing Russian enterprises is not available to everyone; factoring companies impose a number of requirements on financial position and solvency of counterparties. When concluding a reverse factoring transaction, special attention is paid to the analysis of the financial and economic activities of the buyer. For determining financial stability and solvency standard methods of credit analysis are used. Consider indicators such as revenue, financial results. In addition, a number of specific parameters are analyzed, for example, such as the liquidity of the purchased products, the relationship between the buyer and suppliers, the duration and quality of their cooperation.

Before concluding a transaction, the factor must also be convinced of the reliability of the supplier, since there are situations when the requirements for delivery are transferred back to him, for example, when the buyer returns a low-quality product.

The scope of purchasing factoring includes almost any industry. This product is used, in particular, by retail chains, which thus provide themselves with the maximum delay. Procurement financial factoring allows manufacturing companies to obtain a commercial loan from their suppliers, to cover the resulting cash gap and pay your debts on time. In a number of industries, the use of this financing tool can also allow the company to gain competitive advantages.

Factoring in the practice of Russian enterprises

Personal experience

Alexey Zholob,

company director trading house"Nautilus"

In the fish business, which we have been in for many years, the use of reverse factoring has an interesting effect. Many people know that some types of fish are caught only once a year, and in order to ensure the maximum profitability of sales, it is necessary to purchase at a time such a volume of products that would be enough to sell throughout the year. Previously, they could only afford large companies who have access to long term financing. Purchasing factoring makes it possible to compete with them. Using it, we increased our sales by 20 percent. We can afford to sell products with maximum profit, choosing for this a moment when a favorable situation develops on the market. In addition, we freed up funds that were used to open a network of retail outlets.

Mikhail Khoroshev,

Deputy Financial Director of the cabinet factory "RONIKON"

Purchasing factoring is one of the tools for financing the current activities of our company. Consideration of the application by the factor took about one and a half months, the process itself was similar to the usual loan application any bank, so it did not cause any particular difficulties. A certain problem was the coordination of the scheme of work with suppliers - largely due to changes in the calculations, since the payment came from the factor and there was a need for mutual offsets. The document flow also had to be coordinated separately - despite the development of digital technologies, the provision of originals confirming the delivery of documents was a mandatory requirement of the factor. It is worth noting the high cost of factoring relative to other sources of financing, so the appropriateness of its use is determined in each specific case.

The use of purchasing factoring made it possible to more flexibly manage receivables, quickly increase the actual payment deferrals and not burden the company's assets with additional collateral. Proper use of this tool can also bring benefits to the company, for example, if a supplier is ready to provide a discount when switching from deferred payment to post-shipment settlement terms, then the company’s savings on this discount may exceed its factoring costs - in this case, the factor pays with the supplier immediately after delivery, you get a discount, and you already pay the factor for the delay.