Participants and transaction scheme

Factor (Bank Millennium) - specialised financial institution, which purchases from the supplier receivables, referring sold goods or services, pursuant to the signed factoring agreement.

Factoree (supplier)an entrepreneur, which has short-term receivables due from a buyer of goods or services.

Counterparty (debtor) - buyer of goods or services, entity obliged to make the payment.

What are the benefits for Customer?

  • improvement of company's liquidity / increasing company's turnover by changing the receivables on funds,
  • improvement of ratios and Balance Sheet structure,
  • reduction of the Customer's business activity risk,
  • adjusting of financing level to actual sales level,
  • possibility to obtain financing without any additional collateral, as receivables purchased by the Bank are a basic collateral,
  • capacity to obtain discounts from suppliers by quicker access to funds under factoring arrangement,
  • possibility to extend the invoices' due date for individual counterparties,
  • savings generated due to reduction of costs of administration, settlement and collection of receivables,
  • more efficient management of receivables portfolio,
  • simplified formal procedures and thereby – quicker access to financial resources.

WEB Faktor

To meet the Customers' expectations referring the scope of provided factoring services, the Bank has implemented a modern system for factoring settlements with an advanced application for the Customer - WEB Faktor.

WEB Faktor is a system used to electronic interchange of data between the Bank and the Customer, including developed reports module. Application is available through web site and does not require conducting any installations on the Customer's computer. All information is available for the Customer on-line.

Trought the use of the WEB Faktor application, on selected factoring products, the Customers have a possibility to obtain financing on the basis of the list of receivables sent electronically.

Among others, the following operations are available via application:

  • input of invoices to the system (manually or via file import),
  • quick, comfortable and safe communication between the Customer and the Bank by creating documents with proper information and requests, that the Customer wants to submit to the Bank,
  • generation of reports.

Reports module

Information available via WEB Faktor application enables the Customers analysis and effective management of the factoring agreement as well as versatile evaluation of their cooperation with counterparties.

Among others, WEB Faktor's reports module enables view of:

  • data referring the factoring agreement, agreement's outstanding as well as limits granted to each counterparty and their utilization,
  • all financed and non-financed receivables,
  • data referring transfers made to the Customer,
  • settlements within period defined by the Customer, as well as printout of individual settlement of receivables,
  • invoices issued to the Customer by the Bank on account of provided factoring services within period defined by the Customer.

How to start a factoring cooperation?

Just fill-in the on-line contact form and you will be contacted by an Advisor to set up an appointment. The Advisor will also provide detailed information about the offer as well as documents required by the Bank.

To prepare the offer and calculate the amount of factoring limit, we will need the following from you:

  • founding documents that indicate the legal status of the company,
  • documents indicating the authorities empowered to make statements regarding property rights and financial obligations,
  • confirmation of the business' REGON statistical number,
  • confirmation of the NIP number (Taxpayer Identification Number),
  • trading documents concerning cooperation with the counterparties,
  • financial documents of the company.
  • We may also ask for other documents.

At the meeting, the Advisor will present the Bank's factoring offer and will advise you on the solutions best suited to your business needs. Following an analysis and approval of the factoring limit, the Advisor will present detailed terms and conditions of the transaction. Just sign the Factoring Agreement to start your factoring relationship with the Bank.

Details of the offer are also available in Bank Millennium's branches.


How to recover liquidity frozen in invoices or how to disburse financing under the factoring agreement?

  • send a list of receivables in the agreed form to the Bank,
  • the Bank, having received the list, will disburse the funds to your account.

Factoring financing is performed in a renewable line, which means that every payment made by your counterparty releases part of the limit and makes it reusable.


  • Will all counterparties have to be covered by factoring agreement?

    No, it is for the Customer to identify counterparties to be covered by factoring agreement. During the term of the agreement Customer may include new counterparties.

  • What is the difference between factoring and credit?

    Within factoring, apart from financing, there are always rendered other services, such as: repayments monitoring, receivables collection, taking over the risk of receivables repayment failure by the Debtor No additional services are rendered to the Customer
    Receivables repayments sent by the counterparties repay the financing granted to the Customer Credit is repaid by the Customer
    Transaction risk is based on the Customer and/or counterparty Transaction risk is always based on the Customer
    Possibility of gaining the financing by the Customer with a lower financial standing Potential creditor is a company having a good financial standing or good financial status
    Receivable purchased by the Factor is the main collateral Establishing of additional collateral is very often necessary
    Improves financial liquidity and simultaneously does not lower the creditability of the company Lowers the creditability of the company

  • How does the Customer receive funds within the factoring service?

    The Customer sends to the Bank a list of receivables in predefined form. After receiving the List, the Bank makes the withdrawal of funds on the Customers bank account.

  • How fast funds are transferred to the Customer's bank account?

    Usually on the date of sending the List of receivables to the Bank

  • Which receivables can be covered by factoring service?

    With factoring service can be covered receivables resulting from product or service sale transactions.

  • How much does factoring cost?

    Factoring costs include the following components:
    • commitment fee (i.e. against factoring limit assigned),
    • handling commission (against invoice),
    • interest on financing at the level of base rate plus the Bank's margin.

  • What is the difference between recourse factoring and non-recourse factoring?

    Non-recourse factoring is a service where the Factoree transfers on the Factor the receivables, as well as risks connected with the receivables repayment failure by the Debtor.

    Recourse factoring is a service where the Factoree transfers on the Factor the receivables, under restriction that in case of the receivables repayment failure by the Debtor within the period defined in the agreement, the Factoree becomes the entity obliged to repay the receivable to the Factor. Transfer of receivables on the Factor is not equal to transferring the risks connected with the receivables repayment failure by the Debtor.

  • Which companies may be interested in factoring services?

    Usually interested in factoring services are companies that:

    • cooperate with most of their counterparties applying differed payment terms,
    • intend to extend their present counterparties the payment terms or to offer longer payment terms to their new counterparties with whom they are just starting the cooperation,
    • are interested in additional services, such as financing, receivables management or protection against the counterparty's payment failure.

  • How to release money frozen in invoices?

    • the Customer will send to the Bank in predefined form a list of receivables,
    • the Bank, having received the list, will make a payment for purchased receivables,
    • each repayment done by the counterparty will result in releasing a part of the factoring limit, which makes it reusable.