• Bad debt work both banks & the debtors

  • 14 years in the factoring market

  • Factoring is a convenient financial instrument for your business development

  • Financing of your production and trade activities

  • Increase in sales, competitive delay in payment

  • Working capital financing of your company

  • International Factoring

  • Export factoring for Ukrainian exporters

  • Import factoring for Ukrainian importers

  • Financing of export-import supplies

  • International Factoring

  • International standards of factoring services

Domestic factoring

Factoring theory

Factoring is an additional instrument of increase in circulating assets.

Factoring (from factor – mercantile agent) is a sort of trade-commission operation which is combined with crediting of Client’s circulating capital. It is based on purchase of Client’s invoices by factoring company on special terms.

Modern factoring is a complex of financial services provided to the Client by the Factor in exchange for the assignment of accounts receivable. It includes the financing of good’s supplies, credit control and acceptance of credit risk, accounts receivable ledgering, control of payments collected from the Debtors etc.

According to the factoring procedure there should be signed the Supply Contract on open account terms between the Client and the Debtor. The Client and ARMA FACTORING LLC (Factor) sign the Factoring Agreement according to which the Client assigns accounts receivable relating to the definite Debtor to the Factor.

Factor is obliged to make advance payment up to 90% of the invoices’ face value after receiving from the Client all documents which confirm the fact of shipment. The remittance of remainder (from 10% of the invoices’ face value) will be made after receiving the entire amount for the goods supplied from the Debtor.

Factor also can render only accounts receivable ledgering without providing financing.

How factoring works

1. The supply of goods on open account terms.
2. Assignment of accounts receivable.
3. Provision of finance advance at the rate of 70-90 % of the invoices’ face value.
4. The Debtor makes payment to Factor (100% of the invoices’ face value).
5. Commission for factoring financing provided and accounts receivable ledgering.
6. The remittance of remainder (30-10% of the invoices’ face value).

Additional advantages of factoring:

1. Increase of your company’s part on the market. Thanks to working capital, received from ARMA FACTORING LLC, you are able to expand production and sales volume.
2. Receiving of additional profit. Increase in circulating assets and in sales volume will promote increase in profit accordingly.
3. Simplicity and transparency of procedure. In contrast to bank loan factoring does not demand any security and opening additional current account for service.
4. New competitive advantages. You will be permitted to offer your buyers competitive indulgence and at the same time to maintain the necessary range of goods in your stocks thanks to additional working capital.
5. Solving of cash deficit problem. Individual schedule of providing financing allows receiving money at any moment after making a shipment. Financing provided increases in accordance with the increase in sales volume at that you keep the possibility of getting overdrafts or bank loans without any restrictions.
6. Improvement of financial statements. Non-recourse factoring allows improving your financial figures appreciably owing to decrease in accounts receivable.