Support for entrepreneurs in the form of factoring liquidity guarantees at Bank Millennium

Bank Millennium provided the owners of medium and large companies an option to conclude factoring transactions with liquidity guarantee from Bank Gospodarstwa Krajowego. The guarantee covers repayment of the client’s liability under Reverse Factoring Agreement. It is yet another programme supporting companies in the current difficult situation related to COVID-19 pandemic, in which Bank Millennium participates.

BGK liquidity guarantees may be used by owners of medium and large companies when applying for new factoring limit, its extension or increase. The guarantees covered by the programme will be paid from the funds accumulated in the Liquidity Guarantee Fund.

The guarantee is granted up to 80% of the amount of factoring limit, whereas the amount of a single guarantee cannot exceed PLN 200 m. The maximum amount of the factoring limit secured with BGK guarantee is PLN 250 m. It is also important whether the client has already used factoring or a loan secured by a liquidity guarantee, as it affects the determination of the available amount of funding covered by the liquidity guarantee. The financing under the reverse factoring limit may cover receivables in PLN and other currencies. The guarantee for companies that meet the required criteria is granted for a period no longer than 24 months.

The entire guarantee awarding process is operated by Bank Millennium, the client does not have to contact BGK. Under a guarantee that has been granted, BGK collects a commission the amount of which is linked to the size of the company and the period in which the applicant uses the limit and then pays its liabilities towards the bank. The commission is payable in advance for the entire guarantee period and calculated on the guarantee amount.

BKG programme for factoring is addressed to companies interested in receivables financing products and expecting more than just access to cash. Apart from the financing liabilities and receivables, an important advantage is also a package of additional services such as, e.g. monitoring of receivables. Moreover, in case of securing factoring with liquidity guarantee, company may count on some additional benefits such as e.g. higher amount of funding or no further collateral.

The programme is available via Bank Millennium to companies, which have Polish resident status, employ 50 people and have revenues and/or total assets of 10 mln EUR and more, which were not in a difficult situation on 31 December 2019 and also do not have past-due liabilities over 30 days to ZUS, KRUS, the Tax Office as well as the Bank in an amount exceeding 3,000 PLN, or did not have such liabilities as at 1 February 2020. The guarantees may be granted until the end of the year.

It is yet another support programme for companies at Bank Millennium. In September, the bank concluded an agreement with BGK, thanks to which businesses gained the opportunity to apply for additional payments to loan interest. This solution is available in Millennium to businesses served in the Corporate Banking segment, whose liquidity was affected during the pandemic and which had not been in a difficult situation before the pandemic. Earlier on, in its online system Bank Millennium enabled micro-, small and medium-sized companies to apply for subsidies under PFR Financial Shield programme.

For more information on the support for entrepreneurs visit: https://www.bankmillennium.pl/przedsiebiorstwa

Author:

Bank Millennium

Last Updated on April 28, 2021 by Karolina Ampulska