Bank Millennium has introduced accounts receivable financing for companies

Bank Millennium offers a new solution for companies starting in October, in the form of financing accounts receivable. It complements the factoring offer and is suitable when trade agreements with counterparties contain no-assignment clauses or no possibility to sell accounts receivable.

The solution is mainly targeted at companies, which do business with large organisations such as retail chains, international corporations or subsidiaries of foreign companies. It is exactly contracts with such counterparties that often use no-assignment clauses. In case of such contracts the company cannot use classic factoring services, but it can get funds thanks to the service of accounts receivable financing.

Using this solution requires the bank to take a credit decision regarding granting a financing limit to the customer, setting-up a registered and financial pledge on the customer’s account with the bank (for counterparty payments) as well as access to the WEB Faktor system. After concluding the agreement with the bank the customer shall present an invoice (with maximum payment term of 90 days) and in return will receive financing up to 100% of the invoice value. The counterparty shall pay directly to the customer’s account, from which the bank will automatically collect money to repay the financing provided to the customer.

WEB faktor is an online system for settlements under the agreement concluded with the customer, offering an advanced application for the customer. It is used for electronic exchange of data between the bank and the customer; it also has a sophisticated reporting module. The application is available via the website and does not require installation on the customer’s computer. All information is available online to the customer and it allows the company to analyse and effectively manage the agreement and to make a versatile assessment of relationships with the counterparties.

Author:

Bank Millenium

Last Updated on April 26, 2021 by Karolina Ampulska