Rules of cooperation

STEP 1: Initial interview and evaluation of the possibility of signing a factoring agreement.

 Presentation of the necessary documentation on the business run by the invoice owner, contractors-debtors, receivables sold and submission of an application, which will specify: the period for which the contract is to be concluded and what will be the subject of it (i.e. data on the invoice owner, goods / services or planned the number of invoices). This will allow the factor to assess the risk of debt purchase, debt servicing costs and potential profits.

DOCUMENTATION REQUIRED FOR FACTORING AGREEMENT.

1. 1. Concerning your business.

• legal documentation,
• founding documents (notarial deed of the company or business register, certificate of assigning the REGON number and the current excerpt from the commercial register), extract from land and mortgage registers, title deeds, lease agreements, powers of attorney, information about the concession (if you run a company that requires it), etc.
• economic and financial documentation,
• information from the bank about the company accounts held, the amount of turnover and average balance of accounts, loans taken and timely repayments, as well as the general condition of the company,
• financial statements, i.e. balance sheet and profit statement for the last year or the last three years, information from the Social Insurance Institution on payment arrears, information from the Tax Office on non-arrears with taxes,
• information about the shares held or sureties granted,
• information on the conducted business, i.e. the sales market, supply market, offered products / services, distribution, competition, pricing policy,
• information on the recipients of goods / services, i.e. the number of recipients, the course of cooperation so far, the amount of receivables, the value and number of planned receivables.

2. 2. Concerning the receivables to be transferred to the factor.

• documents confirming the existence of receivables,
• VAT invoices with confirmation of receipt or shipment of goods, commercial contracts between your company and debtors.

3. 3. Concerning debtors.

• financial documentation,
• financial statements, forecasts of future financial statements, information on the current turnover with contractors with whom contracts are concluded, information on terms of payment and timely implementation, turnover in the current year, scope of cooperation with a given contractor-debtor,
• the value of sales,
• timely payment by the contractor,
• forecast monthly amount of receivables to be factored,
• possible prepayments, immediate and deferred payments.

 After submitting the application and providing the necessary documentation, the factoring company analyzes the situation of the invoice owner and his contractors-debtors. This process, as well as the analysis of a loan application at a bank, consists of two stages:

• the first (formal) stage is the quality analysis of the submitted documents; the factor checks whether nothing is missing, whether the submitted documents are truly and correctly completed,
• the second stage (substantive) is a very thorough examination of the economic situation of the company and contractors-debtors, as well as commercial risk assessment - the factor must be sure that he signs a contract with a reliable company.

• good economic situation of the invoice owner,
• good situation of the sector in which the activity is conducted,
• long-term cooperation with contractors-debtors,
• previous payment terms falling within the commercial terms proposed in the contract,
• the quality of the documentation presented,
• good cooperation with the factor so far'