Factoring Secured by Guarantees

Export factoring secured by a KUKE guarantee is a solution aimed at improving the financial liquidity of exporters operating in a highly competitive international environment. Thanks to the insurance guarantee provided by KUKE, KUKE Finance can finance the receivables of exporters who have difficulty obtaining financing in the market or increase the value of existing financing. KUKE guarantees the timely repayment of the exporter’s obligations to the factor under the factoring limit granted to the exporter in PLN or foreign currency.

The KUKE guarantee applies to reverse factoring (purchase) and recourse factoring.

Benefits for the exporter

• Reverse factoring improves the exporter’s financial liquidity by extending the repayment period of obligations, e.g., when KUKE Finance pays for an invoice with a 14-day payment term on its due date, and the exporter settles their obligation to the factor after an additional 60 days.
• The exporter’s Polish or foreign supplier gains certainty of payment for delivered components, raw materials, or materials, making it easier for the exporter to negotiate favourable supply terms.
• Factoring secured by a KUKE guarantee provides the Polish exporter with the ability to obtain favourable payment terms from suppliers, such as long trade credit, thereby reducing costs.

Key cooperation conditions

• To obtain a guarantee from KUKE, the company’s average net revenue from export sales in three out of the five years preceding the issuance of the guarantee must not be less than 20%.
• The guarantee amount constitutes 80% of the value of receivables purchased by KUKE Finance from the exporte.
• The maximum period of the guarantee is 12 months.

The guarantee for the repayment of the factoring limit is offered by Bank Gospodarstwa Krajowego (BGK) from the Crisis Guarantee Fund. BGK guarantees the factoring company that the liabilities resulting from the factoring limit granted to the entrepreneur will be repaid on time in PLN or in a foreign currency. The BGK guarantee to reverse factoring and recourse factoring.

The purpose of the guarantee is to provide liquidity to entrepreneurs operating in a difficult business environment. The solution encourages factors to work with entrepreneurs even if they do not have collateral in the form of a portfolio of assigned receivables in reverse factoring or when the quality of the receivables portfolio in recourse factoring does not meet all the factor’s requirements.

Important conditions

• The guarantee covers up to 80% of the value of receivables purchased by the factor from the entrepreneur.
• The maximum amount of the guarantee is PLN 200 million.
• The guarantee must be issued by December 31, 2022.
• The maximum maturity period for the receivables or liabilities covered by the guarantee is 180 days for recourse factoring and 240 days for reverse factoring.
• More information on the guarantee of repayment of the factoring limit can be found on the website of Bank Gospodarstwa Krajowego.

More information can be found on the website of Bank Gospodarstwa Krajowego.