Domestic factoring

You can benefit from the domestic factoring when the delivery of goods and rendering of services under deferred payment terms is fulfilled between legal entities and/or sole proprietors operating in Bulgaria.

1. The supplier delivers goods and/or services to the buyer under the sales contract concluded by them.
2. The deferred payment accounts receivables are assigned to the bank.
3. The supplier receives advance payments under the factoring agreement between 70% and 100% of the invoice amount.
4. The buyer pays the amount of the transferred receivables to the bank.
5. The bank deducts the advance payment from the buyer’s payment and transfers the remainder to the supplier.

International factoring

As a member of the largest network of factoring companies - Factors Chain International /www.factors-chain.com/, MKB Unionbank offers international factoring services to international traders.

Export factoring as a form of trade financing is suitable for you, if you export goods and/or services under deferred payment terms. By export factoring, you have the opportunity for market expansion and competitive advantage by granting 30-90 days delayed payment option to your customers. In the meantime you can avoid the losses deriving from non-payment of the buyer.

The supplier exports goods and/or services to the buyer.

The supplier assigns its invoices to the Import factor through the Export factor /MKB Unionbank/. The Import factor is operating in the Buyer’s country and assumes the credit risk.

1. The Export factor makes an advance payment under the approved account receivables to the supplier.
2. The Import factor collects the deferred payment receivables in accordance with the trade contract signed between the supplier and the buyer.
3. The buyer makes a payment to the Import factor on the due date. The Import factor transfers the amount to the Export factor.
4. The Export factor deducts its advance payment from the buyer’s payment and transfers the remainder to the supplier.
5. The Export factor and the Import factor collaborate as members of Factors Chain International /FCI/.

What should you do in order to take advantage from the factoring services offered by MKB Unionbank?

• You have to submit your sales contract for which you would like to receive factoring services to the nearest financial centre or regional corporate centre of MKB Unionbank.
• You sign a factoring agreement with the Bank.
• Your company informs the buyer in writing on the assignment of the receivables to the Bank on the grounds of the signed factoring agreement.
• The Bank provides the working capital financing (advance payments of the receivables), collects the receivables and keeps up with their payment.

If you have any questions, please do not hesitate to contact the nearest financial center or regional corporate center of MKB Unionbank. Our specialists from Factoring and Leasing Management Department are at your disposal as well. You can contact them at tel. 02/915 3383 or 02/915 3386 or to e-mail them at scf@unionbank.bg