Promsvyazbank offers a whole range of factoring services, including domestic factoring (recourse and non-recourse), export and import factoring. PSB possesses a developed branch network with offices in major cities around Russia. Promsvyazbank renders factoring services since 2002 and now days we take second place among Russian factoring companies.

Factoring - is a service for suppliers of goods or services that includes the purchase of accounts receivable by a factoring company (Factor). Suppliers can use factoring services for at least one of the following reasons: financing; accounts receivable ledgering; collection of receivables; protection against bad debts.

Operating finance based on the assignment of receivables to a factoring company can help you deal with fluctuations in the amount of your ready cash stabilise and better plan your cash flows.

Advantages of factoring:

• A Factor finances the supplier’s commercial turnover by purchasing the accounts receivable. The supplier receives up to 90 % of the amount of the invoices on the day of the submission and the remaining 10 % - after the receivables are settled. Consequently, the Factor helps the suppliers to increase their working capital and so expand the business;
• Factoring services allow suppliers to grant their customers longer credit terms;
• Factoring covers credit risks; a supplier that resorts to factoring services is secure against bad debts. In the case of insolvency of the debtors, the guarantee against outstanding payments ensures that they receive up to 100% reimbursement of the total of unpaid debt;
• Outsourcing the management of the accounts receivable and thus transforming the supplier’s fixed expenses into variable expenses and allowing him to devote more time to his core activities.

In October 2003 JSC Promsvyazbank has become a member of Factors Chain International (FCI). FCI the largest factoring association in the world with about 216 members in 62 countries. JSC Promsvyazbank covers your factoring needs in connection with export and import.

The Two-Factor System in Operation

The Two-Factor System means, as the name implies, a co-operation between two factoring companies, one in the seller’s country, the Export Factor, and one in the buyer’s country, the Import Factor.

1. The seller delivers goods to his buyers.
2. The seller assigns his invoices through the Export Factor to the Import Factor, who assumes the credit risk (provided this has been agreed beforehand).
3. The Export Factor makes the agreed financial advance against approved invoices to the seller.
4. The Import Factor collects the outstanding invoices in accordance with the sales contract existing between the seller and the buyer.
5. The buyer pays to the Import Factor, who transfers the amount to the Export Factor.

We have many years of extensive national and international experience in the development of innovative factoring solutions. You can trust us because we know your business.