Direct customer financing
Direct customer financing (POF) is a non standard service allowing you to pay your suppliers for their products or services through Factoring České spořitelny a.s. Factoring České spořitelny provides this service mostly to its current clients.
Balance factoring
Balance (Balance sheet) factoring is a tailor-made product for clients wishing to improve their balance sheet and other financial data as of the end of accounting period.
Balance factoring makes the best of one of the most important factoring advantages - e.g. does not increase company indebtedness and is therefore used by companies, which cannot or do not wish to take out new loans or by companies needing to improve their balance sheet accounts as of the given date. Using factoring based funding has no impact on company liability accounts, but receivables are sold and therefore the transactions only have impact on the assets part of the balance sheet.
As the majority of receivables are assigned at the end of accounting period, the client can use collected funds as working capital - e.g. to settle its liabilities to customer or for short-term loan settlement. This operation results in company balance improvement as well as optimization of indebtedness, share of bank loans in total assets or ROA (return on assets).
MODEL EXAMPLE
| No Factoring | Factoring | Balance Factoring | |
| ASSETS | 100 | 100 | 60 |
| Fixed assets | 30 | 30 | 30 |
| Non-fixed assets | 70 | 70 | 30 |
| Petty cash and equivalents | 5 | 45 | 5 |
| Current receivables | 50 | 10 | 10 |
| Inventory | 15 | 15 | 15 |
| LIABILITIES AND EQUITY | 100 | 100 | 60 |
| Equity | 30 | 30 | 30 |
| Profit | 5 | 5 | 5 |
| Liabilities | 70 | 70 | 30 |
| Bank loans | 50 | 50 | 10 |
| Current liabilities | 20 | 20 | 20 |
| Financial data: | |||
| Total indebtedness | 70% | 70% | 50% |
| Loans / Assets | 50% | 50% | 17% |
| ROA (return on assets) | 5,0% | 5,0% | 8,3% |
No factoring - the company does not take advantage of factoring, has 50 million CZK in short term receivables and may not have enough operating cash to pay its liabilities to suppliers, state authorities, etc.
Factoring - the company takes advantage of factoring, assigns 40 million CZK to the factoring company, which immediately provides funds. The company may use the funds to pay its liabilities to suppliers, etc.
Balance factoring - the company takes advantage of factoring and uses the funds provided by a factoring company for single time receivable assignment to pay its liabilities (such as bank loans). This results in overall improvement of company balance (see financial data above).
Maturity factoring
Maturity factoring is designed for clients that do not need immediate advance deposit payment on invoice submission, but they rather looking for more efficient financial and business planning and cash flow levelling. In this case the client gets full payment (invoiced amount total) on an agreed day, mostly on invoice due date. Payment collection from suppliers is ensured by Factoring České Spořitelny
Forfaiting
Forfaiting services (long-term receivable buy out) are designed for current clients as an above standard service.
If you are interested in these services, pleas contact Ceska sporitelna Bank, Department of business transaction financing, phone: +420 956 714 043.
Consulting
This service is based on two levels:
analysis of your company and its financial situation. Based on this detailed analysis we prepare recommendations concerning factoring services or other products and services within Financial Group of Ceska sporitelna Bank.
we can also prepare the same analysis and validation of your customers
