How factoring works

The simple chart below shows basic steps of factoring financing:

Explanatory comment:

Supplier is a client of CSOB Factoring.

Customer becomes a debtor of CSOB Factoring.

CSOB Factorig is customer's creditor.


Supplier signs a factoring contract with CSOB Factoring and becomes our client.

Goods or services are supplied to Customer. Supplier issues an invoice with a cession clause and sends off an original to Customer.

Then Supplier assigns his claims to our company, which implies that Customer of his becomes a debtor of CSOB Factoring.

Supplier / client has the right to draw an advance payment up to 90 % of nominal value of the claim including VAT.
When the claim is due, Customer is obliged to pay on CSOB Factoring account.
  The difference up to 100 % of nominal value of the claim is paid to Client the same day when CSOB Factoring receives the payment from Customer / debtor.


In case of delay in payment of the claim, CSOB Factoring conducts dunning and other collection steps. If necessary third persons are involved in these actions.

The way of dunning and recovery of debts are always consulted with client to correspond with his business interests as well as customs of given sector.


For detailed information how factoring works call our specialists: 267 184 805.

© CSOB Factoring, a.s. | IC: 45 79 42 78 | Registered at the Municipal Court in Praha, Section B, Entry 1647 |

Výmolova 353/3, 150 00  Praha 5 | Phone:  00420 267 184 810 | Email:

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