Financing through Factoring

Advantages for You

  • Debt service optimisation for public corporations
  • The possibility of financing projects at the contract signing stage
  • Individual interest rate

Detailed Information

Our advisors will be glad to inform you about the detailed price conditions

Financing for municipalities provided by means of a purchase of a receivable from a contract for work by the bank, on the basis of an assignment of receivables between the bank and the contractor. 

Features of Financing through Factoring:

  • An individually set interest rate based on the repayment term, volume, and risk involved in the financing
  • Payment conditions of the agreement arranged in advance - on the basis of an agreement between the municipality, contractor, and bank
  • Variable and fixed interest rate
  • Repayment on the basis of the agreed terms and conditions of the contract for work
  • A purchase may be one-off (following the completion of a project) or continuous (following the completion of each invoicing unit, on the basis of an acknowledgement of a liability by the investor)
  • The payment conditions of the agreement are arranged in advance through negotiations between the municipality, contractor, and bank
  • The loan is granted on the basis of the client’s creditworthiness and subject to the submission of officially verified minutes from the meeting of the municipal assembly approving the financing

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