The digital transformation of factoring: benefits for every participant

Following global trends, traditional financial instruments in Uzbekistan's business sector are gradually giving way to more advanced solutions, and one such innovation is digital factoring. This modern financing tool took off in Uzbekistan when the OZ PLANET digital platform entered the market in early 2024. The new technology supports the entire factoring process remotely and offers significant benefits for suppliers, buyers and banks.

Factoring is primarily of interest to supplier companies, as it lets them get paid faster and manage working capital more effectively. For buyer companies (debtors), factoring makes it possible to build stable and mutually beneficial relationships with suppliers while regularly receiving deferred payment. For banks (factors), factoring helps attract new clients and retain existing ones by offering an attractive alternative to loans, which not every company can obtain.

In this article we explain the benefits participants in digital factoring get by joining the OZ PLANET platform. For clarity, we list the benefits for each party separately and highlight the shared benefits.

Benefits for suppliers on OZ PLANET

• Payment under a deferred-payment contract immediately after the three-party register of monetary claims is signed.
• Minimal requirements for the supplier's financial stability, as the focus is on the buyer's solvency.
• No collateral and no need to justify how the financing is used.
• A lower debt load (factoring financing is not a loan).
• Financing offers from several OZ PLANET partner banks at once.
• Financing for small projects, as there is no minimum contract amount for deferred-payment deliveries.
• Factoring financing for companies in different industries across all regions of Uzbekistan.
• Online tracking of the available limit with each factor.
• Advice and support at every stage of a factoring deal.

Digital factoring gives the supplier instant access to financing after shipment, improving liquidity and asset turnover. With working capital replenished quickly, the supplier can meet obligations on time and plan the next stages of business growth.

Benefits for buyers (debtors) on OZ PLANET

• Faster, simpler settlements under deferred-payment contracts and stable supplies from counterparties.
• Higher short-term liquidity and digital management of accounts payable.
• Limits at OZ PLANET partner banks and a simplified process for connecting and financing suppliers.
• A single database of reliable suppliers with information on each supplier's actual financial position.
• Advice on implementing digital factoring processes and custom reports by buyer parameters with export options.
• A positive reputation through active support of small businesses.

Digital factoring lets buyers quickly and easily transfer their debt for delivered goods/services from the supplier to the bank while keeping convenient deferred-payment terms. This creates a basis for mutually beneficial cooperation and opens opportunities to expand the product range and improve quality.

Benefits for banks (factors) on OZ PLANET

• Fast online financing of suppliers under deferred-payment contracts (within a day or faster).
• The option to set limits for large debtors on OZ PLANET (large grocery stores, marketplaces, pharmaceutical companies, retail chains and other companies).
• Over 70% lower costs of processing applications and documents, and automatic rejection of applications that do not meet the bank's requirements.
• Supplier client support handled by OZ PLANET.
• An analytics module with export of reports on the financing portfolio, limit usage and the factor's business plan performance.

Digital factoring strengthens the bank's market position and expands its client base through process automation and higher operational efficiency.

Shared benefits

• Remote interaction of all factoring participants in a "single window" on the OZ PLANET platform, with no in-person meetings.
• Faster document processing and signing thanks to electronic document exchange and e-signatures.
• Legally binding signed documents and reliable protection against forgery, as all participants use electronic signatures.
• Legally binding confirmation of deliveries and the exact amounts payable.
• An intuitive, user-friendly interface.
• No costs for developing and updating the platform software.

In conclusion, digital factoring brings significant benefits to suppliers, buyers and banks. By bringing factoring operations together and digitalizing them on OZ PLANET, administrative costs fall for all participants and interaction becomes much faster and more efficient. Digital factoring strengthens the financial resilience of all participants and creates favorable conditions for their growth in the modern digital economy.

You can start applying for digital factoring in your personal account.