Factoring financing

This information is not exhaustive and does not constitute a binding offer under the Act V of 2013 on the Civil Code. For more details, please visit our website (www.mbhbank.hu) or call our contact center. The development of product related content is under construction.

Our factoring solutions

Our factoring solutions provide financial stability to our customers operating in the business sector, whether they are small and medium-sized enterprises or large corporate firms.

Online factoring

Free and simple online administration for smooth export transactions.

Domestic factoring

Flexible, complex financial services tailored to the day-to-day liquidity demand of your business.

Export factoring

A diverse service package for managing the foreign buyer base and ensuring smooth export transactions.

Supplier factoring scheme

A digital platform to provide a common interface for buyers, suppliers and the bank to execute transactions.

Pre-financing agricultural subsidies

A simpler, more flexible solution to pre-finance EU and national subsidies.

Healthcare factoring

Purchase of receivables from state, university and healthcare institutions.

Pre-financing of receivables from state institutions

It offers a quick and flexible option for pre-financing receivables of your business from state, municipal, higher education or healthcare institutions.

Receivable purchase

An increasing number of our customers are using our receivable purchase service, which not only provides financing for their businesses, but also helps them remove large receivables from their books, significantly improving their year-end or even mid-year balance sheet structure and balance sheet indicators.

Balance sheet optimization solutions

A scheme tailored to your business's specific demands, balance sheet improvement and working capital improvement services in a receivables purchase structure.

Frequently Asked Questions

What is factoring and how does it work?

⁣Factoring is a financial service or form of financing that strengthens the liquidity position of companies. It should not be confused with traditional credit and loan agreements.  

Generally, it does not affect the company's own credit line or bank limits, allowing you to quickly and flexibly finance your open, outstanding receivables.  

Companies that use factoring to meet customer demands receive (on average) 80%, 90% or even 100% of the revenue from the products and services they provide immediately after the sale, thus you don't have to wait for long payment terms. This coverage is provided by the bank providing the factoring, and at the end of the process, the factor bank is paid by the buyer. This means that payment terms of 30, 60 or even 90 days can be reduced to as little as 24 hours, enabling businesses to maintain financial stability and grow quickly.

What type of factoring services are available?

⁣Several types of factoring services are available. These may be services with or without recourse, as well as financing prior to or at the due date. 

In the event of a recourse factoring, if the buyer fails to meet their payment obligation, the receivable is transferred to the supplier and the Bank is entitled to demand execution of payment of the receivable from the supplier. In the case of non-recourse factoring, the opposite happens: if the buyer fails to pay due to insolvency, once the Bank has assumed the buyer's payment risk, your company is not obliged to repay the unpaid receivable.

Different types of factoring exist in terms of payment: such is advance factoring when, according to the contract, the factoring company pays an advance on the purchase price when purchasing the receivable, and maturity factoring, where payment is only requested when the receivable becomes due.

What solutions does factoring offer businesses?

Liquidity problems can arise even in prosperous companies, therefore, it is worthwhile for any business to take advantage of factoring or receivables purchasing as ‘window dressing’ in certain cases.

It offers several advantages for those who:

have a reliable but slow-paying partner base, yet they want to receive their revenue within 24 hours,
expand their business, but liquidity is hindering their development,
and they also require buyer payment risk protection.
In the event of balance sheet adjustment, the buyer portfolio can be sold to the Bank, the factored receivables can be removed from the books, the company's buyer base turnover rate can be optimised, and the management's related KPIs can be improved.

Legal information

This information is not comprehensive, serves only to draw attention, and does not constitute a mandatory offer under Act V of 2013 on the Civil Code (Civil Code) Should you have any questions concerning the terms and conditions of the scheme and the options to participate please contact your Personal Financial Adviser or visit any of our branches.

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