How to finance seasonal fluctuations

We are a trading company importing toys from abroad. We provide toys to special stores as well as retail chains. We face problems with high seasonality - approx. 70 % of our yearly turnover is made in  the 4th quarter.

We import toys during the 3rd quarter and pay our suppliers sooner than we get payments from our domestic customers. For three years now we have handled high seasonality of our business with the help of CSOB Factoring.

Factoring financing copies all fluctuations including seasonal peak in the pre-Christmas period. On the other side we use no financing in off-season, which in fact does not matter since CSOB Factoring charges no stand-by fee in case of not drawing the full limit.