SF Finance

Flexible
Trade Finance
Provider

Are you bored waiting for your money?
Have it available immediately -
the solution is factoring.

What is
Factoring

Scheme of the transaction

  1. Conclusion of Factoring contract
  2. Supply of goods/services
  3. Assignment of receivable*
  4. Financing of receivable
  5. Collection
  6. Balancing the receivable
* The process of assignment is driven by the Act no: 89/2012 NCA.

Modern, flexible and fast method of trade finance suitable mainly for manufacturing and trading companies.

Factoring is based on exploiting of external assets - receivables.

Factoring is a modern method of trade finance based on exploiting of external assets of the company – receivables. It is used mainly by manufactoring and trading companies due to flexible and fast solution for cash–flow unbalance. It is an ideal financing instrument being an alternative to overdrafts.

Its substance is purchase of short-term trade receivables by a specialized financial institution.
The purchase is effected with or without recourse to the client.

Using factoring the receivables may be financed with the tenor
of up to 150 days irrespective whether the customer of the client is located inland or abroad. The underlying receivables arise from supplies of goods or services on supplier credit (open credit).

One of factoring function may be also the credit risk protection. It means the protection of client against the risk of payment disability (insolvency, liquidation) as well as against the risk of payment unwillingness of its customers.

Factoring is mostly used to stabilize the unbalanced cash–flow
as well as to finance the fast growing business.

At the same time factoring is suitable for risk ensuring and it could
be a competitive advantage as well.

Use of Factoring

Factoring is mostly used for the following reasons:

  • Cash-flow stabilization – balancing entry and exit payment terms.
  • Financing of fast growing business – the characteristic of factoring is a big flexibility and fast decision making process enabling clients to finance rising orders and also seasonal peaks.
  • Credit risk protection – in the form of non-recourse factoring – export and domestic business.
  • Competitive advantage – factoring may be competitive by providing customers with extended payment terms.

Are you not sure if factoring is the right solution for you?

Call us for an advice:

Benefits of Factoring

Off balance
financing

Factoring based on purchase of receivable provides financing by “cleaning the window” and it does not represent a loan with increase of external indebtedness.

Financing
of chains

We have the know-how of financing the receivables towards retail chains as such procedure is much complicated in most cases due to special conditions set by chains in the sales contracts and/or general conditions of purchase.

Financing
of Start Ups

The principal collateral of factoring are trade receivables.

This enables to finance the Start-Ups in the case they dispose with quality goods and creditworthy customers.

Intragroup
financing

We offer the know-how for financing of receivables between related companies.

Types of Factoring

From practical point of view factoring is quite simple tool to use.
SF Finance provides both types of factoring.

There are two basic types of factoring

Every client may choose the type of factoring suitable for his kind of business.

There is recourse factoring and non-recourse factoring being the two basis types of factoring where the non-recourse type provides clients also with the credit coverage of purchased receivables.

Are you interested in particular factoring solution for your receivables?

Please fill in the simple request and we will contact you.

Recourse Factoring

In the case of recourse factoring the factor does not takes the risk of payment ability of factored debtor.

In the case of non-payment of the receivable during the recourse period of 14 – 60 days after maturity there is an obligation of the client to return the financing provided to Factor.

What is the procedure?

  • Conclusion of factoring contract
  • Assignment of receivable to SF FINANCE
  • Financing of 70-90% of invoice nominal value in favour of client
  • Collection of receivable on the account of SF FINANCE*
  • Payment of remaining amount of 10-30% in favour of client
* In the case the receivable is not collected the financing is returned.

Scheme of recourse factoring

  1. Conclusion of factoring contract
  2. Delivery of goods/services
  3. Assignment of receivable*
  4. Receivable financing
  5. Collection
  6. Balancing the receivable
* Process of assignment is driven by the Act no.: 89/2012/NCA.

Non-recourse Factoring

The Factor takes the payment risk of factored debtor in the value of 80 – 100% of purchased receivable.

In the case of non-payment the collection period reaches maximum of 365 days from the invoice maturity. Then the Factor balances the remaining amount of the receivable to its guaranteed level and stops charging the interest – the Payment Under Guarantee is effected.

In the case the receivable is collected after the payment under guarantee and in the higher amount the Factor effects the payment of the remaining amount in favour of client´s account.

What is the procedure?

  • Conclusion of Factoring contract
  • Assignment of receivable to SF FINANCE
  • Financing of 70-90% of invoice nominal value in favour of client
  • Collection in favour of SF FINANCE account*
  • Balancing the invoice in favour of client (10-30%)
* In the case of non-payment of the receivable SF FINANCE pay the rest amount of 10-30% in your favour.

Scheme of non-recourse factoring

  1. Conclusion of Factoring contract
  2. Delivery of goods/services
  3. Assignment of receivable*
  4. Financing
  5. Collection
  6. Receivable balancing
  7. Payment under guarantee
* Process of assignment is driven by the Act no.: 89/2012/NCA.

Request for Factoring

Are you interested in a factoring indication for financing of your receivables?
When this is the case please fill in the data with the specification of the receivables offered and we will come back to you soon.

Your identification (all fields are obligatory)

Receivables specification

Remove receivables
Add other receivables
Add / remove receivables

Advantages of Factoring with SF Finance

Fast decision

Decision making competences are in the hands of a small team enabling to make decisions within few days.

Risk
appetite

Working capital financing is provided to a wide range of production and trading companies including start-ups.

Factoring is asset based type of financing and its substance are creditworthy customers and quality products delivered.

Non-banking character

SF Finance is a private equity entity and it is not supervised and limited by any covenants for lending.

Flexibility

We have no limitations relating to business branches, we provide tailored-made services.

We finance separate receivables as well as whole portfolio of sales ledger. SF Finance provide working capital to companies from all industrial branches, trade, agriculture and services including transportation and construction.

About SF Finance

SF FINANCE s.r.o. is a sister company of SWISS FORFAIT s.r.o., Prague which is involved more than 20 years in trade finance in the form of forfaiting – purchase of short and medium term receivables.

The shareholders structure is represented by Czech private equity.

SF Finance belongs to typical independent non-banking trade finance provider with high respect to individual demands of every client.

We are mainly oriented to small and medium sized companies with the turnover of up to 20 Mio EUR delivering goods or services domestic or abroad on open credit with the tenor of up to 120 days.

Our clients are based in Czech or Slovak Republic and in all countries of Central Europe.

Contact

SF FINANCE s.r.o.

Ing. Tomáš Vogl - commercial director

Na Perštýně 362/2 - 4th floor
110 00 Prague 1 - Old Town
Czech Republic

ID: 01420658

The company is registered in file C 206184 kept at the Municipal Court in Prague.

Parking is available in the underground garage of National Theatre.
Entry from Ostrovní street, Prague 1.