Hungarian SME-s face the challenge of maintaining their financial stability. One of
the reasons for this is their customers who pay after 30-60-90 days and late
payment is also common. Factoring provides a solution to this problem,
especially digital factoring. Factoring, similar to borrowing, is funded by a
financial institution, a bank, or a factor, who pays the money for the requesting
company.

With factoring, You will not have to wait weeks and months for the payment of
Your invoices. As part of the procedure, you basically “sell” your invoice to the
factor. You immediately receive the money, and Your client who owes Your
company this amount pays to the factor when the deadline is due. This way You
can shorten the payment period to 24 hours.

We will illustrate the process with a simple example:
Let’s take a person who delivers fruits and signs a contract with a hypermarket
chain to deliver his products. After the delivery, he has to wait for 30-45 or even 60
days while the payment period comes to an end and he receives the money in
exchange for his delivered fruits. This is the point when factoring comes into the
picture, as the person who delivers can decide to “sell” his invoice to a factor. This
way he will not have to wait until the due date of the payment, he can receive
approximately 90% of the amount of the invoice with VAT within 1-2 days from
the issue of the invoice. Altogether, factoring enables the person to deliver the
fruits to stabilize the financials in his company and even invest that money for
the company’s future growth.

Péntech operates as a tied agent – this means that we are acting on behalf of a financial partner, in the case of factoring, it is our subsidiary Péntech Financial Solutions Zrt., and in terms of borrowing, it is MKB Bank Nyrt. Our service offers a digital, unique solution in Hungary that makes the process of factoring quick and easy and helps companies to borrow. In the case of expired invoices, we offer our efficient help with claims management through our partners. Our supervisory authority is the Magyar Nemzeti Bank, they control our operation, and we are registered with them. Péntech won the most promising Hungarian fintech start-up award at the 2019 Fintech Show.

You need to upload the following documents:

• Invoice (open, has not expired)
• Delivery bill or certificate of completion
• Tax statement (not older than 30 days)
• The trial balance of Your company (not older than 3 months)
• Customer statement of account (customer analytics)
• Specimen signature
• Supply contract or order form

It can happen to anybody, we are flexible in terms of that. After the payment
deadline of the invoice, we do not charge You for late payment for the following
15 days – we look at it as if we agreed for 15 days more than our original plan.
After 15 days, we reach out to You to consult the following steps.

Nowadays, factoring is a widely-accepted, efficient solution and there is a high
chance that Your partner is familiar with it as well. Furthermore, it gives him the
signal that You, as his business partner, are able to pay, and he will not have to
worry about the delivery of future agreements. It is almost certain that You will
not be his first partner to factor and maybe he is already in touch with Péntech.

Sending in the bank account statement is optional, but helps us to be able to
give you a more accurate and precise offer. We request a summary for the last
90 days, where we can see each transaction itemised. It is downloadable from
most Hungarian bank’s NetBank site (for the fastest administration, please
download it in the format of “.csv”, “.xls”, “.xlsx”)