Reverse factoring secured by collateral
Is the payment due date approaching too quickly? Choose reverse factoring at
—we’ll pay your suppliers right away, and you’ll gain valuable time.
up to 2.5 million PLN
‘s revolving credit line
starting at 1.5%
‘s monthly commission, calculated in arrears
up to 48 hours
‘s waiting time for a decision
What is reverse factoring?
Does your company have obligations with deadlines that are fast approaching? Do you want to pay your bills but are waiting for your customers to settle their payments? Instead of getting stuck in a vicious cycle and waiting for suppliers to start asking for payment, take advantage of reverse factoring.
Reverse (purchase) factoring is a service where you send your purchase invoices to us, and we pay them immediately. This gives you more time to make payments and improves your cash flow. Plus, you’ll maintain good relationships with your suppliers, who will receive their payments on time—even if you need a few extra weeks.
Reverse Factoring in 3 Steps
The best solutions are the simplest ones. See how reverse factoring works in practice!
Step 1 – Contact us
During the consultation, we’ll walk you through the details, help you choose the right financing limit, and tailor the terms to the specifics of your partnership with your suppliers.
Step 2 – Submit your application
We can submit the application together during the consultation or after it is over. You will receive a decision within 48 hours.
Step 3 – Take Advantage of the Extra Time
We’ll pay the supplier right away, and you can settle the payment up to 90 days later!
What are the benefits of reverse factoring?
Extended payment period of up to 90 days
You don’t have to pay off your debt until your customers pay you—so there’s no stress about a looming deadline.
You only pay when you use it
We do not charge any fees for maintaining the credit limit. You only pay for the amount of the credit limit you use.
Continuous access to financing for 12 months
Throughout the year, you can use these funds to pay your invoices—whenever you need to, without having to submit a new request for each purchase.
Low initial fee
Start using financing at minimal cost—the upfront fee is only 0.5%.
Is reverse factoring right for you?
if you want to finance purchases made from domestic retailers.
if the collateral (real estate) is not on the list of exclusions.
if your company has been in business for at least 24 months.
if you want to finance the purchase of fixed assets, the repayment of other loans, or the payment of tax arrears.
How does reverse factoring work in practice? Examples
Find out in which situations reverse factoring has proven to be the right choice and what real changes it has brought about for our clients.
Furniture manufacturing
During peak season, our client’s company receives as many as several orders a week.
Although the company has the necessary production capacity, it must regularly order materials—even though it has not yet received payments from customers. In this situation, reverse factoring proved to be a beneficial solution.
Effect
On the day the agreement was signed, we paid off our client’s debts totaling 76,000 PLN. Now he and his employees can focus all their efforts on fulfilling orders and pay off their debts long after his clients have settled their payments.
Online Store
Our client—a store owner—placed an order with a trusted supplier. However, that supplier has recently started requiring payment within 14 days.
The problem is that sales of new products haven’t started yet, and the investments made in previous months have put the store in a difficult transitional situation. The solution? Reverse factoring.
Effect
We granted our client a credit limit of 250,000 PLN. We paid off all purchase invoices totaling 138,000 PLN. This allows them to focus on selling new products and settle the debt at their own pace—even within 90 days. If necessary, they can also use the remaining funds within the credit line.
FAQ: Frequently Asked Questions
What documents do I need to include with my application?
When applying for reverse factoring, please have the following ready:
- current financial statements,
- bank statements from the last 6 months in .pdf format,
- JPK_VAT files from the last 6 months in .xml format,
- a collateral proposal accompanied by an appraisal report issued no earlier than 6 months prior to the date of filing the application.
Please also keep in mind that we’ll need to check your company’s credit history with BIK—we’ll ask for your consent to this verification before we begin working together.
What can I not use reverse factoring funds for?
Funds obtained through reverse factoring may not be used to purchase fixed assets (with the exception of the real estate development sector), to repay cheaper debt financing, or to settle outstanding public-law obligations.
Can I finance a single business purchase through reverse factoring?
The reverse factoring service involves entering into a 12-month contract, so it’s a long-term solution. If you need one-time financing, check out our business loan—PragmaCash.
What are the costs of reverse factoring?
The costs of reverse factoring consist of:
- commission – determined on a case-by-case basis based on risk, starting at 1.5% per month, charged in arrears,
- Initial fee – determined on a case-by-case basis, starting at 0.5%.
We do not charge any additional fees for early repayment—you can pay off your balance in full before the due date without incurring any fees.
Can I change the factoring limit during the term of the agreement?
If your company’s needs change during the term of the contract, you can increase your available limit through the Customer and Payer Portal.
Log in, submit a request to adjust your funding amount, and easily bring your company’s ambitious plans to life!
What can serve as collateral for reverse factoring?
We accept only real estate as collateral. We accept all types of real estate that are not on the exclusion list.
We do not allow reverse factoring to be secured by:
- agricultural and forest properties,
- wooden properties,
- castles, palaces, manors, forts, and other properties listed in the register of historic monuments or under the supervision of the historic preservation officer,
- power plants and solar farms,
- wind turbines and wind power plants,
- plots without zoning conditions or not covered by the city’s land-use plan,
- sawmills, mines, gravel pits, sand pits, quarries, etc.
We accept a second-priority mortgage lien.
How does reverse factoring differ from traditional factoring?
Here are the key differences between traditional factoring and reverse factoring:
- In traditional factoring, the basis for financing is the invoices you issue to other entities. In reverse factoring, we finance the invoices your company has received from suppliers.
- Traditional factoring comes into play when a service has been provided or goods have been delivered, but payment has not yet been made. Reverse factoring allows you to finance a purchase immediately after placing an order—this is important if the supplier does not fulfill orders without prepayment.
- With traditional factoring, you receive funds directly into your business account—reverse factoring gives you time to pay your suppliers and helps you maintain good relationships with them.