Factoring Secured by Guarantees

Factoring secured with a guarantee issued by KUKE is a solution aimed at improving the financial liquidity of an exporter operating in a highly competitive international environment. Thanks to the guarantee provided by KUKE (the insurer), the factor – i.e. KUKE Finance – is able to purchase receivables from an exporter who otherwise has difficulties obtaining financing or increase the value of existing financing. KUKE guarantees the timely payment of the exporter’s liabilities to the factor resulting from the factoring limit granted to the exporter in PLN or in a foreign currency.

The KUKE guarantee applies to reverse factoring and recourse factoring.

Benefits for the exporter

• Reverse factoring improves the financial liquidity of the exporter by extending the payment deadline, e.g. when the invoice issued with a 14-day payment date is paid by KUKE Finance, and the exporter pays this amount after 60 days.
• The Polish or foreign supplier of the exporter obtains the certainty of receiving payment for the sent components or materials, thanks to which it is easier for the exporter to negotiate favourable delivery terms.
• Factoring secured by the KUKE guarantee gives the Polish exporter the opportunity to obtain favourable payment terms from the supplier, e.g. a long payment terms, thus reducing its costs.

Important conditions

• To obtain the guarantee from KUKE, the company’s average net revenues from export sales in three of the five years prior to issuing the guarantee may not be less than 20%.
• The amount of the guarantee is 80% of the value of receivables purchased by KUKE Finance from the exporter.
• 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.