OTP Bank is the market leader factoring service provider in Hungary, member of the Hungarian Factoring Association and Factor Chain International (FCI), which is representative body on international factoring and trade.

OTP Bank can offer both domestic, international services and tailor-made solutions for complex and specific financing needs as well.

Sales with deferred payment are accompanied by the modern economy and are one of the main moving force of competitiveness. Therefore, there is a question, why should you run the risk and take an administrative burden or why would you expose your business with credit if there is a financial solution, which can help your company solve financial issues in an easier and faster way?

What does factoring finance provide?

Commercial factoring is a versatile and flexible solution which can provide financing and other services like credit coverage or receivables management for those companies who have (not overdue) open account receivables which can be assignable for a third-party.

Available factoring services

• Financing: provides funding source of 80-100% of the gross amount of the open account receivables which can be available for repayment, purchasing inventory, or even to financing investment and salary payment.
• Credit insurance: giving protection to the debtor’s non-payment risk and insures 95% of the account receivables portfolio.
• Credit management: can provide realistic assessment on the market and financial status of the debtor(s), and gives proposal for available financing limit, avoiding risk of delivery open and the strengthening marketing.
• Collection: makes easier for you the invoice management, handling overdue receivables and performing of collection process.
• Supplement services in connection with export trade: foreign debtor’s – depending on their risk profile – 80% to 100% non-payment risk coverage, financing is also available beside receivables management and credit coverage.

Advantages of factoring

• Factoring open account receivables can provide your company immediate access to money.
• In addition to financing, OTP Bank can undertake your debtor's non-payment risk and provide receivables management.
• If your buyer is creditworthy, the financing doesn't affect your company's own credit limit, because factoring can be transacted burden at the buyer limit.
• With factoring, you can still provide deferred payment option for your buyer(s).
• Financing is predictable, service fees can be calculated in advance, there are no hidden cost in the pricing structure.
• Fast administration service, shorter decision-making process, favorable financing conditions.
• Up-to-date information about receivables and payments is continuously available.

What is the difference between credit and factoring?

• In the case of credit, Bank assesses the company who requires credit facility, while in factoring, financial status and solvency of the company's trading partners (buyers) are evaluated primarily.
• Compared to credit, factoring provides funding source without additional collaterals.
• In the case of factoring, receivables can be settled by your own income, in contrast, the loan must be repaid at predetermined dates, which may not coincide with your coming into income.
• Factoring provides more complex service than credit. Moreover, on financing, factoring can provide receivables administration, debtor portfolio management, collection and credit insurance as well.

Tailor made solution

If you cannot find an appropriate service among our existing products that would provide a suitable and comprehensive solution for your company, please contact our colleagues and we can offer you unique solutions tailored to your business needs, whether it is window-dressing, advance financing of tax receivables, or digitally supported solutions for managing receivables.

e-Faktoring service

E-Factoring is a web-based platform that dynamically and comprehensively serves the needs of our clients, and it provides those technical, security and functional innovations that make the commercial factoring service even more secure, fast, convenient and informative to our clients.

The E-Factoring service is only available to those Clients, who have valid Factoring frame contract with the Bank as a Supplier and/or a Debtor.

If you need more information about e-Factoring service, you can request it through the channels indicated in the Contact section!