Factoring small business. Conditions and advantages of factoring for individual entrepreneurs and small businesses in Sberbank. Banks often refuse factoring on favorable terms

Factoring, as a form of trade lending, appeared in ancient Babylon and looked like installment payment for purchased goods. Modern factoring became widespread in Europe in the mid-20th century and today represents the financing of a supplier of goods against the assignment of receivables. In addition to specialized factoring companies, commercial banks also enter into financing agreements for the assignment of monetary claims.

The assignment of the right of monetary claim to the buyer allows the seller to receive money for the goods from the factoring company in the shortest possible time, increasing the turnover rate of receivables, and reducing dependence on the solvency of buyers. The debtor, in turn, gets the opportunity to defer payment and increase the volume of purchases if funds are insufficient.

Financing terms for factoring range from several days to 2-6 months. If the buyer of the goods does not pay the factoring company within the established time frame, the factoring company may demand that the supplier return the funds paid for the assigned receivables. Such conditions are typical for factoring with recourse and have lower service rates than for factoring without recourse, where the factoring company independently collects the uncollected payment from the buyer of the goods.

The price of financial resources provided by the factoring company, depending on the period of their use, is in the range of 1.3 – 5.5% of the assignment amount. Factoring services are usually paid for by the supplier of the goods, but in our company the buyer can pay the commission in full or in part.

Factoring for small businesses

Factoring is especially attractive for small and medium-sized businesses, which often experience difficulties in replenishing working capital.
Factoring is not just a type of lending to suppliers against the assignment of receivables, but the whole complex services related to accounts receivable management. Financing in a factoring company allows you to create a stable mechanism for providing a business with cash injections along with such familiar banking products as an overdraft or loan. However, factoring has undoubted advantages: the absence of a firm collateral, optimal financing terms, setting a limit per client in accordance with the current sales volume and taking into account growth prospects.

Factoring operations of the company sitessia

Our company is part of the Allrise international group of companies. We specialize in providing factoring to Russian small and medium-sized businesses for which factoring is necessary for successful development!
We provide best service. Your applications are reviewed within a few days, and you receive financing the next day after the assignment of receivables. It’s possible to get financing for small and medium-sized businesses! We are for honesty and openness in relations with clients!

Refinancing of accounts receivable

Debts from one company to another are a common and common occurrence. It is the debts in favor of a particular organization that are called its accounts receivable.

For example, a wholesale seller can ship a batch of goods to a buyer, and the buyer does not pay him immediately, but after a week (for one reason or another). Or: a consulting firm analyzed the business of another organization, presented its recommendations, fully fulfilling the terms of the contract. The client company, according to the same agreement, must make payment within 10 days (not instantly).

It is obvious that delays in payment seriously hinder business, reducing its sustainability and ability to develop. Returning to myself simple example- trade - until the buyer has paid the invoice issued by the wholesaler, the seller cannot purchase a new batch of goods to service other counterparties.

The essence of factoring lies in eliminating these delays. A third party (bank, specialized factoring company) buys out the buyer’s obligations, providing the seller with “real” money immediately after the sale of the goods. Of course, this is not done for free - however, the possibility of uninterrupted functioning of the business usually makes it easy to “recapture” the factor’s commission. As a rule, a factoring company is ready to pay up to 90% of the debt amount immediately. The remaining 10%, less commission, is paid when the debtor repays his debt. The amount of the commission depends on the duration of the deferred payment and the risk of non-payment of the debt.

Result in numbers:

84 billion rubles

is the volume of applications for factoring services considered this year

Factoring mechanism and differences from credit

The mechanism is quite simple; difficulties in understanding arise due to the need to clearly understand the roles of the parties to the transaction. The client of the factoring company provides services or provides the buyer with goods and services with deferred payment. Here are the usual steps in the process:

1. The client (seller) transfers to the factor documents confirming the fact of the appearance of receivables.
2. The factor covers most of the debt (up to 95%).
3. The debtor makes payment for goods or services.
4. The lender and the factor make final payments between themselves: the bank receives its money back with an additional commission for services, the seller receives the balance of the funds due to him (5 - 30%).

By and large, factoring is the only comfortable way to avoid a cash gap and increase turnover. The main differences between factoring and a regular loan:

• Financing without collateral
• Permanent contract
• Does not appear in reports as a credit liability
• Increasing the limit with increasing turnover
• Accounts receivable management, covering trade credit risks
• Repayment on the end date of the deferred payment under the contract

If we note the difficulties of factoring, the main one is that many companies have poorly organized document flow, so firms are faced with the problem of organizing the document flow process during factoring services. Sometimes suppliers are faced with the reluctance of some debtors to work with factoring. It is often difficult for a supplier to calculate their costs due to the presence of hidden fees. The Business Support Center will help you understand all the difficulties and experience all the benefits that suppliers receive when using factoring services.

Result in numbers:

73%

Applications submitted to the Business Support Center are approved through a wide network of partners

Conditions for SMP by productDevelopment Factor – Bank

Small businesses are interested in financing because their sources are limited. He needs truncated factoring, which is lending secured by receivables. A medium-sized business is interested in a tool for increasing sales volume, and therefore it needs full commercial factoring.

The effect of factoring services is maximum if the received financing is used to purchase goods, which in turn are also shipped with deferred payment, the company again receives financing. This type of work allows small businesses to actively grow and brings significant competitive advantages.

The bank's work with buyers also, as a rule, leads to a reduction in the terms of payment for supplies by buyers. Factoring minimizes project risk associated with the active growth of the company.

The demand for factoring services in the SME segment is growing. Small business companies, for various reasons, cannot attract borrowed funds in a volume sufficient for the growth of their business, since credit score based on the past experience of client companies. Many companies that cannot obtain standard credit products may well count on factoring financing to support SMEs, since the factors evaluate not only the current financial condition of the client, but also the quality of receivables. Often, small companies make deliveries to well-known debtors on the market, which significantly reduces the risks of factors and contributes to making a positive decision on cooperation.

Result in numbers:

by 47%

The volume of concluded contracts within the framework of factoring services has increased this year

Below are standard conditions for the Development Factor - Bank product:

Where to start to arrange factoring

You can independently search for the necessary information, buy a program for monitoring procurement and hire tender specialists with suitable experience or submit an application to the Entrepreneurship Support Center and we will provide you with the full range of required services at the most affordable prices with a guarantee of a positive result.

We will promptly check your organization for compliance with all criteria, order an extract and report the result. After this, we will agree on a cooperation agreement with you and carry out preparations constituent documents and declarations required for further work with contracts and financing.

When the preparation is completed, we will assign you a personal manager who will manually select transactions according to your criteria, according to which the advance is approved and short time calculations, and we will also provide access to the Multifunctional Account, which will provide you with all the necessary information.

Edelweiss LLC is a young company engaged in the development, production and supply of non-alcoholic products to various retail chains Russian Federation. Starting its work in 2011, by now it has already managed to significantly develop production and organize supplies to one of the leading companies in the field retail- X5 Retail Group. But CEO“Edelweiss” Sergei Gennadievich still calls the company just a small enterprise - “it’s such a small family business.”

General Director of Edelweiss LLC Sergei Gennadievich Geraskin shared with Sberbank Factoring a story of success and business development using such a financial instrument as factoring. The business owner spoke about his experience of interacting with major financial institutions and the reasons for choosing Sberbank Factoring for a long-term partnership.

How long has Edelweiss been using factoring financing to increase production turnover?

“We have been using factoring for three years now, although, of course, the need for financing and additional fundraising has existed since the founding of the company. For quite a long time we received refusal from leading financial institutions and listened to wishes to “grow up” and increase production volumes before turning to them.”

“Only in 2014, Edelweiss turned to factoring, but the service was provided at a fairly high and inconvenient interest rate. We came to Sberbank Factoring a year ago with a ready-made story and a certain turnover. Thanks to the well-coordinated work of client managers, we were able to conclude a factoring agreement very quickly and efficiently. To date, the effective rate that was offered by Sberbank Factoring is, frankly speaking, one of the best in Russia,” noted the General Director of Edelweiss.”

Factoring on the Russian market has not yet acquired the character of a mass product, and yet, you turned to factoring, why?

“Any financial instrument, be it a loan or factoring, is a quick replenishment working capital. I believe that today it is very difficult for a small enterprise such as ours, with a turnover of no more than 200 million per year, to obtain loans. The delay with purchasing networks, in fact, can be up to 60 days, and during this period we need to carry out 3 product supply cycles. Therefore, factoring for us today is an indispensable and accessible tool for replenishing capital.”

“If we talk about business development in general, we can note the following trend: over three years, the revenue of Edelweiss LLC has doubled annually. It is obvious that without factoring we would not have achieved such results.”
“An undoubted advantage is the simplified electronic process of interaction with product buyers through the FactorPlat system. Now, without involving additional employees, and therefore reducing costs, I, as a manager, can quickly online change and control all processes of the transaction: from an order for supply financing to the last payment on receivables.” Is it convenient to work with Sberbank Factoring? Or do you still have any comments?

Is it convenient to work with Sberbank Factoring or are there any comments?

“Over the year of work, we have not been able to encounter any negative aspects of interaction with Sberbank Factoring.” On the contrary, we can note a significant plus - it is customer focus, which, based on the experience of communicating with top factoring organizations and large banks, was a pleasant surprise. Any request, any call does not go unanswered or without specific actions on the part of Sberbank Factoring managers.”

“In the current economic situation, working with Sberbank Group companies is not only about history and reputation, but also about reliability. It is these three main advantages that keep Edelweiss in Sberbank Factoring. If we talk about the prospects for the development of relations, then, undoubtedly, there are plans to increase production and supply turnover. As a consequence, the expansion of relations with the Factor.”

Sberbank Factoring is ready to provide financial support to small businesses that are experiencing difficulties in obtaining traditional bank financing. We are pleased to offer favorable conditions for the development of long-term relationships with representatives of the same sector of the economy as Edelweiss. After all, factoring is for real effective tool financing for the development of small and medium-sized businesses.

Factoring has never been a simple product for a financial institution. Despite the potentially huge demand, the supply and number of actual transactions is quite limited.

There are few companies and banks developing factoring in the SME segment - in Russia there are hardly more than twenty of them

So, today about 6 thousand people use factoring. Russian companies. This is a very small figure compared to the total number of businesses that are actively economic activity(Let me remind you that there are more than 2 million small and medium-sized enterprises registered in the country, including individual entrepreneurs).

There are also few companies and banks developing factoring in the SME segment - in Russia there are hardly more than twenty of them. Because it is difficult to enter this market and then work successfully in it. Especially today, when the risks are greater than ever.

Both credit and factoring are often compared - both products are related to working capital financing. At the same time, from the point of view of the creditor, factoring is a more secure instrument: in return for the funds issued, the factor (bank or factoring company) receives the right to claim receivables, and the debtor company, as a rule, is more reliable than the supplier of goods and services itself.

Factoring involves receiving money guaranteed by future payments from counterparties

For example, federal retail chains their credit ratings are significantly superior to many of their suppliers and contractors. However, they prefer to pay for the goods with a long delay.

The factor is ready to buy out such “safe” debt, offering, in fact, unsecured financing. Factoring involves receiving money guaranteed by future payments from counterparties, while the situation with unsecured business lending remains quite difficult. Banks today are not ready to lend to SMEs without collateral: the current crisis has demonstrated a certain disloyalty of clients to this instrument. The share of overdue debt in the collateralized lending segment was significantly lower, so banks abandoned the high-risk unsecured option, where in modern market conditions interest rates can fluctuate from 15% to infinity.

At the same time, today it is very difficult for a lender to assess the risks of such products, so it is easier for a bank to refuse it altogether than to accept it even at very high rates. Factoring allows SMEs to attract additional bank financing without collateral at quite reasonable prices: 13-15% per annum. Therefore, for those who previously worked with factoring, but now for one reason or another cannot use this service, it is very difficult to replace it - many companies do not have enough collateral for credit financing.

Many entrepreneurs prefer not to get involved with government contracts

Being the largest debtor in our country, the state is increasingly trying to attract small and medium-sized entrepreneurs to the system of government contracts: government agencies and state corporations, which are legally required to place part of their purchases in the SME segment, today account for approximately 50% Russian economy. Even a small part of this “pie” can become a serious incentive for business development in the country.

Many entrepreneurs prefer not to get involved with government contracts only because they understand that the business cannot cope with large orders that provide for a long deferred payment. It can completely deplete the working capital of a small business. It is not surprising that, according to the RSBI Support Index study of the well-being of small and medium-sized businesses, in 2016 the number of participants in government procurement among small companies decreased from 28% to 18%. The active growth of the segment is currently hampered by legislation that actually prohibits the use of factoring in the field of government procurement. But the state has already paid attention to the problem, and it seems that a solution can be expected in the near future. After all, the priority of developing factoring, as an effective tool for business support, is included in the strategy for the development of SMEs in Russia until 2030. The Strategy Roadmap included the need to create and improve factoring standards, as well as the launch of specialized electronic platforms.

The Russian factoring market in 2016 amounted to 2 trillion rubles, that is, approximately 2% of GDP (the average in Europe is 4%, in the leading countries: Germany, Italy, Great Britain - much more). A quarter of the total volume comes from small and medium-sized enterprises. In terms of turnover in 2016, the market grew by 13%, but in terms of portfolio volume it remained virtually unchanged, remaining at the 2015 level.

Removal of legislative restrictions regarding the use of factoring in the government order segment will allow the market to at least double

This is due to the fact that some borrowing companies left the market due to the economic crisis, but reliable counterparties more actively used factoring for development own business. In 2017, the main players expect growth in the segment: the crisis, which greatly affected the industry, is behind us, business activity comes to life. The factoring market, which appeared in Russia in the second half of the 1990s, still remains narrow. Among the main players there are no more than 20 names, among which Promsvyazbank is one of the leaders. Due to the large share of the public sector in Russia’s GDP, the removal of legislative restrictions regarding the use of factoring in the government order segment will allow the market to at least double and reach 4 trillion rubles in the next one or two years. At the same time, foreign practice shows that factoring is an equally effective and popular tool for SMEs in both the commercial and public sectors. In no other European country today do there exist such legislative restrictions on the use of factoring in the field of government procurement.

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• For express analysis: Results within 3 hours.
• To analyze a transaction with setting a financing limit Results within 3 days.
• Special offer if you work with retail chains:METRO Cash and Carry, X5 Retail Group, Lenta, AUCHAN

• Consent to information processing;
• Consent to a request for information from the BKI;
• Copy of passports of the director, founders, shareholders (depending on the form of ownership);
• Latest official balance sheet and income statement;
• Cards 62 accounts for transferred debtors per year and SALT for 62 (monthly, with analytics by counterparties).

• Supplier and buyer questionnaires;
• Loan portfolio;
• Certificates of turnover and open accounts;
• Supply/service agreements for contractors transferred for servicing;
• A set of legal documents of the company;
• Additionally, other documents may be requested to analyze the financial and economic activities of the company.

• Application for factoring services;
• Cards 62 accounts for transferred debtors per year or SALT for 62 (monthly, with analytics by counterparties);
• Financial statements(F.1, F.2 and OSV);
• Certificates of turnover and open bank accounts;
• Supply/service agreements for contractors transferred for servicing;
• A set of legal documents of the company.

To receive factoring services, your business must meet the following requirements:

• Any organizational and legal form (LLC, JSC, PJSC, budgetary organizations, individual entrepreneurs);
• The minimum period for registering a business is 6 months;
• The minimum period of actual business conduct is 6 months;
• No negative credit history;
• Surety individuals- business owners, depending on financial condition participants in the transaction;
• The number of debtors is unlimited.

SimpleFinance company offers different kinds factoring services, including:

• Open factoring with recourse;
• Open factoring without recourse;
• Factoring without notifying the debtor;
• Purchasing factoring;

We provide factoring for small businesses and also work with larger clients. You can learn more about financing conditions, tariffs and other issues from our sales managers.

The minimum financing period is 7 working days, the maximum is up to 150 days (under a supply/service agreement - up to 120 days, plus 30-50 days within the grace period (calculated individually).

The maximum annual interest rate, including loan interest and all commissions, is 36.5% per annum.

In case of non-repayment of financing within the grace period under the agreement, 0.01% per day is added to the financing commission - the cost of the commission for the grace period.

In case of non-repayment of financing during the grace period, a recourse period begins. The commission for the recourse period is equal to the commission for the grace period. During the period of regression, work is underway to repay the debt, as well as penalties and fines. Otherwise we're like credit organisation, we go to court to collect the debt.

Factoring is a set of services intended for manufacturers and suppliers who carry out trading activities on deferred payment terms.

Factoring services include financing the supplier, monitoring the status of the buyer's debt, and providing the supplier with information about the status of debt on the part of debtors.

By resorting to factoring services, the supplier receives a number of significant advantages, including:

• making deliveries with deferred payment;
• obtaining unsecured financing;
• accounts receivable are managed by a factoring company;
• the opportunity to receive up to 95% of the cost for the completed delivery of goods at a time;
• protection against payment risks;

The main advantage that the buyer receives is that he can pay the supplier the cost of the goods received at a time convenient for him - we provide a long-term deferred payment.

Factoring services at SimpleFinance in Moscow mean cooperation with a reliable financial institution, the quality of services of which fully complies with all international standards. As one of the key participants in the factoring market for small and medium-sized businesses, our company contributes to the financing of working capital of enterprises in Russia and neighboring countries.

How factoring services are provided

1. The supplier submits a request for factoring services. SimpleFinance reviews the application by analyzing the business status of the supplier and buyers.
2. The factor and supplier enter into a factoring service agreement.
3. The buyer receives notice of the assignment of monetary claims in favor of the factor.
4. The seller delivers goods/provides services to the buyer with deferred payment.
5. The factoring company pays cash to the supplier.
6. The buyer's receivables are paid into the factor's bank account.
7. The factor transfers the remaining funds to the supplier minus a service fee.

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