Import Factoring is a modern alternative guarantee for international trade that allows you to obtain extended payment terms from external suppliers* without the need to issue other financial instruments.
It is an ideal solution when an external supplier delivers goods or provides services to your company under a commercial contract with deferred payment. This way, the external supplier receives their receivables faster and you enjoy a positive cash flow over a longer period of time.

The operations are carried out based on the principle of collaboration between OTP Bank and a factoring company (Export Factor) from the country of your supplier, the exporter.

Our membership in Factors Chain International gives us access to a network of about 400 factoring companies in over 90 countries, which can manage the relationship with your external suppliers, thus eliminating a significant part of the language and cultural barriers.

Your advantages:

- Extended payment terms with external partners
- Security through coverage of the risk of non-payment at the request of external partners
- Reduction of expenses related to external payments - external payment is converted into internal payment, based on the assignment of receivables**
- Simple process - you only communicate with the local factor, i.e. OTP Bank
- Operations are carried out in complete security, through a specialized network with an internationally regulated framework and standards – Factors Chain International
- No fees or commissions for the Importer

_{* Service available for suppliers in countries where there is a Factor offering export factoring and with which OTP Bank has a cooperation agreement.
** for OTP Bank customers}

What are the conditions?

• OTP Bank assesses the financial standing of the Importer and decides whether to assume the risk of non-payment by approving a factoring limit
• Accepted payment term: up to 120 days^***
• The Importer accepts the assignment of receivables by signing the Assignment Notice

_{*** In some cases, longer payment terms of up to 180 days may be accepted.}

The factoring transaction is formalized by signing the factoring contract by your foreign supplier and the Export Factor, who then informs OTP Bank (the Import Factor) about this commitment.

How it works

The Export Factor in the supplier's country collaborates with OTP Bank as the Import Factor.

The supplier receives advance payment from its local Factor, and you pay OTP Bank on the due date.

1. The foreign supplier contacts a Factor in their country, or the Importer contacts OTP Bank
2. OTP Bank performs a credit analysis of the Importer based on the documents submitted and decides whether to approve or reject a factoring limit.
3. OTP Bank communicates the approved limit to the Export Factor
4. The exporter concludes the factoring contract with the Export Factor in their country
5. The importer receives and signs the Notice of Assignment of Receivables to OTP Bank from the exporter
6. The exporter delivers goods or provides a service and submits the invoice to the Export Factor
7. If the supplier and the Export Factor have agreed on financing, the supplier receives 70-90% of the invoice amount immediately into their account
8. Upon maturity, the Importer pays the invoice amount into the account and in favor of OTP Bank in accordance with the Assignment Notice
9. OTP Bank transfers the collected amounts to the Export Factor.

What are the costs?

The service does not involve any cost for the Importer. Commissions are paid by the foreign supplier to its local Factor based on the factoring agreement concluded with the latter.