Check us in the National Bank of Ukraine register before you sign anything. Factoring is a financial service; the company providing it must be authorised, and the register shows exactly which services are covered.
Factoring · Kyiv
You are not borrowing. You are selling an invoice.
FC Garonne provides factoring to businesses in Ukraine: a supplier who has delivered and issued an invoice receives money now, and the right to collect that invoice passes to us.
The distinction from a loan is not wordplay. In a loan you owe the money back; in factoring you have sold a claim — which changes who chases your customer, what appears in your accounts, and what happens if the customer does not pay.
The sequence in outline. Which steps apply, and in what order, depends on the contract.
The decisive term
With recourse, or without
This single word decides who carries the risk that your customer never pays. Ask which one you are signing before you ask about the price.
With recourse
The risk stays with you
If the customer does not pay, the factor can come back to you
You may have to return the funds or substitute another invoice
Usually cheaper, because the factor carries less
Suitable where you know your customers well
Without recourse
The risk passes to the factor
The factor bears the customer's failure to pay, within the agreed terms
Usually more expensive, and with stricter limits on which customers qualify
Exclusions matter: disputes over quality are rarely covered
Read what "non-payment" is defined to mean in the contract
"Non-payment" is not the same as "dispute". Where a customer refuses to pay because they say the goods were wrong or late, most arrangements treat that as your problem, not the factor's — however the facility was described in the sales conversation.
What changes for your customer
Notification, and what it is not
They are told to pay someone elseWhere the assignment is notified, your customer is instructed to pay the factor instead of you. That instruction is the point of the exercise.
Their terms do not changeThe amount, the due date and their rights under your contract remain what they were. An assignment moves the claim; it does not rewrite it.
Relationships are affected anywaySome customers read notification as a sign of trouble. It is worth telling them yourself, first, rather than letting a letter do it.
Verify before redirecting moneyBuyers should confirm any change of payment details through a channel they already trust. Fake "assignment notices" are a known fraud.
Before signing a factoring agreement
Six questions, in writing
Factoring is priced in several pieces, which is why two offers rarely compare on a single number. Ask for the total cost of financing one invoice for the days it is actually outstanding.
1
Recourse or non-recourse, and what is excludedIncluding how commercial disputes are treated.
2
How much is advanced, and when is the rest paidFacilities usually advance a share now and settle the balance after the customer pays.
3
Every element of the priceCommission, financing charge per day, assessment and administration fees. Then ask for one total figure for a typical invoice.
4
What happens if the customer pays lateExtra days cost money. Find out how much before it happens, not after.
5
Which customers are eligibleFactors assess your buyers, not only you. A facility covering your two weakest customers is not the facility you were shown.
6
Who collects, and howHow your customer will be contacted, in whose name, and with what tone. It is your commercial relationship being handled by somebody else.
What we do
Factoring for suppliers
Financing against receivables from creditworthy buyers, with the terms, the advance and every charge set out in writing before anything is signed. No rates are published on this site — price depends on the buyer, the term and the volume, and a headline figure would mislead most readers.
What we are not: not a bank, not a deposit-taking institution, not a debt collection agency buying distressed consumer debt. We do not accept funds from the public, and no money placed with any financial company is covered by the Deposit Guarantee Fund.
Questions
Asked regularly
i.Will factoring appear as debt on my balance sheet?
It depends on the structure and on your accounting treatment, particularly whether risk genuinely transfers. Ask your accountant before assuming either answer — this is one of the main reasons businesses choose one form over the other.
ii.Can I factor a single invoice?
Sometimes, depending on the buyer and the sum. Whole-turnover arrangements are more common because assessing one buyer for one invoice carries the same work as assessing them for many.
iii.My customer disputes the delivery.
Then the dispute is between you and your customer, and in most arrangements the exposure returns to you. Resolve quality and delivery issues directly; do not expect a factor to carry them.
iv.Is this a loan by another name?
No. A loan creates a debt you repay; factoring transfers a claim against a third party. The economics can look similar, the legal consequences are different, and the contract will tell you which one you are in.
Contact
Send the ledger, not the pitch
Your main buyers, typical invoice sizes and payment terms. That is enough to say whether factoring fits at all.