Growth and security are crucial for success in any business. Non-recourse factoring offered by KUKE Finance combines these two important elements. First, we provide immediate access to funds that can be used to expand your business. Second, we protect your company from bad debts by taking on the risk of non-payment by your customers.
Combination of factoring with credit insurance is aimed at companies that have already concluded a credit insurance agreement with the Export Credit Insurance Corporation JSC (KUKE) or plan to do so in the near future.
Thanks to close cooperation between KUKE and KUKE Finance, your business will benefit from a comprehensive accounts receivable management that includes:
- Financing (up to a limit stipulated in a factoring agreement).
- Maintenance of accounts (bookkeeping, managing invoice collections from customers).
- Monitoring (keeping track of payments from customers and their payment morality, soft collection via telephone and by sending letters of reminder to customers).
- Debt collection (in the court of law).
- Protection from bad debt by taking on the risk of non-payment by your customer (up to a credit limit approved by KUKE and a factoring limit approved by KUKE Finance).
- Obtain a reliable source of cash available immediately after issuing an invoice.
- Protect your company from bad debt (non-payment by customers).
- Be more competitive, as you are able to offer longer payment terms to customers without hurting your company’s liquidity.
- Streamline accounts receivable management within your company (save time, optimize trade risk, factor evaluates your buyers’ creditworthiness).
- Improve your balance sheet (factoring is not a loan, therefore it does not add to the liabilities on a balance sheet).
- Benefit from an efficient credit limit assessment process thanks to close cooperation between KUKE and KUKE Finance.
Factoring combined with Package Policy
Combining your factoring agreement with credit insurance is an optimal solution for businesses wanting to boost their export and domestic sales. Factoring agreement provides financing necessary to grow your business and acquire new orders. Insurance policy, in turn, eliminates the risk of bad debt present when a business issues an invoice with a deferred term of payment.
More information about trade receivables insurance under the Package Policy: kuke.com.pl/package_policy
Factoring combined with Policy for the East
Factoring agreement secured by the Policy for the East trade receivables insurance is aimed at businesses exporting goods and services to Russia, Belarus, Ukraine as well as other high risk countries.
Political decisions may have a significant impact on the country’s economy and, consequently, hinder the performance of the contract the exporter has entered. Policy for the East allows the exporter to obtain cover against the risk of buyer’s default and non-payment, as well as against the risk of sudden changes in the political and economic environment of the buyer’s country.
KUKE is the only institution in Poland providing comprehensive coverage against the so-called non-marketable risk which encompasses commercial risk, political risk, and events defined as force majeure. We have a vast experience in covering transactions with buyers based in countries with a high political risk.
More information about trade receivables insurance under the Policy for the East: kuke.com.pl/policy_for_the_east
Factoring combined with Europolicy
Europolicy is tailored for small businesses. It provides insurance cover for export and domestic transactions allowing companies to maintain liquidity. Combining your factoring agreement with Europolicy secures sales with deferred terms of payment to both Polish and foreign buyers (with the exception of Belarus, Russia and Ukraine).
More information about trade receivables insurance under the Europolicy: kuke.com.pl/europolicy
How it works
We agree to purchase your outstanding invoice before its due date falls. In return, subject to the terms of the purchase set out in our agreement with you, we immediately advance up to 90% of that invoice value. The remaining balance, in this case 10% of the invoice value, is available to you after we have received the payment from your customer. The entire process of sending invoice details and keeping track of payments can be managed online through our factoring service system.
In non-recourse factoring, the factor takes on the risk of non-payment by your customer based on a credit insurance agreement concluded between you and KUKE. Under the tripartite agreement between you, KUKE Finance and KUKE, KUKE Finance enters into the rights and obligations spurring from the credit insurance policy.
If your buyer fails to meet his payment obligations on time, we will ask KUKE to initiate its debt collection procedures in order to recover the due amount. In case KUKE fails to recover the debt, you will receive indemnity from the insurer through KUKE Finance.
It must be stressed, that the effectiveness of non-recourse factoring depends on whether the insurance company will issue adequate credit limits for buyers submitted for financing.