{"id":2847,"date":"2026-05-29T03:34:48","date_gmt":"2026-05-29T00:34:48","guid":{"rendered":"https:\/\/svaroglaw.com\/finansovi-poslugy\/bankivskyj-faktoryng\/"},"modified":"2026-09-14T17:11:20","modified_gmt":"2026-09-14T14:11:20","slug":"bankivskyj-faktoryng","status":"publish","type":"page","link":"https:\/\/svaroglaw.com\/en\/finansovi-poslugy\/bankivskyj-faktoryng\/","title":{"rendered":"Bank factoring"},"content":{"rendered":"

Bank factoring is the financing of a business against the assignment of a monetary claim, with a bank acting as the factor. The arrangement is simple: the supplier ships goods on deferred payment terms, assigns the bank the claim against the buyer \u2014 that is, the receivable \u2014 and is financed at once, without waiting for the buyer to pay. It closes cash gaps and provides working capital without a conventional secured loan.<\/p>\n

Since 30 July 2026 factoring has been governed by a separate Law of Ukraine \u201cOn Factoring\u201d No. 4466-IX, which applies alongside Chapter 73 of the Civil Code (Arts. 1077\u20131086), while banks\u2019 right to provide the service follows from the Law \u201cOn Banks and Banking\u201d. Agreements signed earlier and new ones are assessed under different versions of the rules, so we check the terms against the regulation in force on the date of the deal.<\/p>\n

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The advantage of bank factoring specifically lies in the limits and the reliability: a bank provides the service under its banking licence, so it needs no separate finance-company licence, it works with larger sums and it offers related payment services. At the same time a bank\u2019s agreement is usually more complex and stricter than a non-bank factor\u2019s: it sets out in detail the fees, the right of recourse, and the client\u2019s obligations as to the quality of the receivables and the notification of debtors.<\/p><\/div><\/div>

<\/svg>+38 095 554-54-24<\/span><\/a>consultation on bank factoring<\/span><\/div>\n

How bank factoring works<\/h2>\n

The classic arrangement has several steps:<\/p>\n

  1. the supplier (the client) ships goods or provides a service on deferred payment terms;<\/li>
  2. the client assigns the bank the monetary claim against the buyer;<\/li>
  3. the bank pays the client an advance \u2014 most of the value of the supply;<\/li>
  4. the buyer (the debtor) pays the bank by the agreed date;<\/li>
  5. the bank remits the balance to the client, less its fee and the charge for the financing.<\/li><\/ol>\n

    The market benchmarks are these: the advance is usually 70\u201390 % of the value of the supply, the servicing fee is a fraction of a percent of each supply, and the financing charge is calculated as a percentage a year for the days the funds are actually used. Every bank has its own figures, and it is the combination of them that decides whether factoring beats an overdraft. A factoring agreement is made in writing: this is required by the rules on transactions of legal entities (Art. 208 of the Civil Code) and by financial services legislation, in particular the Law \u201cOn Financial Services and Finance Companies\u201d No. 1953-IX.<\/p>\n

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    Types of factoring and what they change in the agreement<\/h2>\n
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    With and without recourse<\/h3>

    Under factoring with recourse the risk of the debtor not paying stays with the client: if the buyer does not pay, the bank will demand the money back. Under non-recourse factoring the bank takes that risk, and the service costs more. The terms of the two kinds of agreement differ fundamentally.<\/p><\/div><\/article>

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    Disclosed and undisclosed<\/h3>

    Whether the debtor is notified of the assignment, and whom they pay.<\/p><\/div><\/article>

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    Domestic and international<\/h3>

    Depends on whether the parties are in different countries; international factoring adds currency and conflict-of-laws questions.<\/p><\/div><\/article><\/div>\n

    Most disputes arise over recourse, so we deal with its terms separately: factoring with recourse<\/a>.<\/p>\n

    What to check in the agreement before signing<\/h2>\n
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    Contract checklist<\/h3>\n\t\t\t<\/div>\n\t\t\t\n\t\t\t