Classic factoring
Online financing of deliveries with deferred payment, with recourse to the supplier. Get up to 100% of the delivery amount on the day goods are shipped or services are provided.
For those confident in their buyers
Classic factoring is financing for a supplier against the assignment of a monetary claim, where the supplier remains liable for payment if the buyer does not settle the debt on time. It is a cost-effective solution for companies that want to minimize financing costs.
How it works
The entire process is online: automatic document generation, signing with an e-signature, real-time monitoring, reports and operation history.
- You have shipped goods or provided a service
- You don't wait 30–180 days for payment
- You receive money right away from the factor (a bank or factoring company) via the OZ PLANET platform
- The buyer pays the factor for the delivery/service when the deferral period ends
- If the buyer does not pay, the obligation to repay the factor reverts to the supplier
Who it suits
Large suppliers with a network of verified buyers
Companies working with a broad buyer base under long-term agreements, framework contracts and regular deliveries.
Suppliers confident in their counterparties' solvency
Companies whose buyers pay on stable terms, have no systemic delays and a transparent financial model.
Fast-growing companies with predictable cash flow
Companies with growing sales and controlled receivables that need to speed up working capital turnover.
Benefits of classic factoring
- Fast approval and simplified scoring
- A lower rate than other types of factoring
- The option to finance a wider pool of buyers
- Quick limit increases with stable payment discipline
Faster working capital at a lower cost of financing, with no credit burden.
Portfolio growth with a manageable level of risk and predictable returns.
Calculate the cost of factoring
Thousands of companies have already chosen factoring with OZ PLANET
FAQ
How is recourse (classic) factoring different from non-recourse (reverse) factoring?
In non-recourse factoring, the factor (a bank or factoring company) takes on the non-payment risk, which raises the cost of financing. In classic (recourse) factoring, the risk of the buyer not paying stays with the supplier. If the client does not pay, the bank/factor is entitled to demand that the supplier return the factoring financing. That is why classic factoring costs less.
How long does it take to receive financing?
Once you are connected and a limit is set, financing is provided upon confirmation of the delivery and signing of the register of assigned claims. The money is transferred to the supplier's settlement account within a day.
Is the buyer's consent required?
Yes. The buyer confirms the payment obligation for the delivery in the system. All three parties to the deal (supplier, debtor, factor) sign the register of monetary claims. The assignment of the claim is recorded in the system and complies with current legislation.
How quickly is a financing limit set?
It depends on whether the supplier is an existing client of the bank and how quickly the requested information is provided. Our specialist can give you the details.
Can I finance several buyers?
Yes. The platform lets you work with several buyers (debtors) within the set limit and manage all deals in one interface.
What happens if the buyer doesn't pay on time?
In the event of a delay, the recourse mechanism against the supplier applies under the agreement. The factor sends the supplier a demand to return the factoring financing received. The supplier returns the money to the factor and then settles matters with the buyer (negotiations, a claim, court, etc.).
Is classic factoring suitable if I already have a bank loan?
Recourse factoring can be compatible with an existing bank loan, as factoring is not considered a loan and does not increase the debt load on your balance sheet.
However, the decision depends on how the factor assesses your financial stability and the risks involved. The key criterion is not only your solvency but also the reliability of your buyers (debtors). It is also important to make sure your bank loan agreement does not restrict the use of other financial instruments, including factoring.
When can classic factoring be refused?
A bank may refuse recourse factoring even though the non-payment risk lies with the supplier. Here are the most common reasons for refusal.
- The supplier is in poor financial condition: losses in the latest reports, systemic loan delays, multiple enforcement proceedings, likelihood of bankruptcy, etc.
- The company has a short track record: startups and companies operating for less than 12 months
- An unreliable buyer (debtor): the buyer is undergoing bankruptcy, liquidation or reorganization; has long overdue payments to other suppliers; has a questionable reputation; is affiliated with the supplier (same group of companies, same registered address, common founders).
- A disputed or unconfirmed delivery: no shipment or a late shipment of goods, delivery claims, prohibited goods.
- Breach of existing loan agreements: some loan agreements may prohibit or restrict raising additional financing.
- Industry or regulatory restrictions: the deal does not comply with the bank's internal policies or legal requirements.
Let us tell you more about the platform
Leave your contact details and our specialist will get in touch.