• You obtain financing without pledging or mortgaging tangible assets; the funds may be used for covering any working capital need type
• The financing amount increases in line with your company’s sales volumes
• In the collection of your receivables you will have as a partner a financial institution 
• You free up resources for developing your core activity
• You obtain information about the creditworthiness of your potential trade counterparties
• You may obtain coverage of  trade counterparties’ non-payment risk up to a pre-approved limit and a maximum percentage of the receivable’s value
• The use of factoring gives you flexibility upon making of business decisions

The factoring deal price has three main components:

• Interest for advance payment - calculated per annum for the period from the date of the advance payment until its repayment
• Factoring commission - calculated as a percentage of the value of each invoice, payable upon collecting the receivable
• Administration fee for invoice processing - a fixed amount for each assigned invoice, payable upon collecting the receivable

• Upon the initial credit assessment of buyers the factoring company does not establish direct contact with them without your explicit consent in writing
• Prior to signing a factoring agreement we recommend that you should obtain the prior consent of your buyers as regards their involvement in the factoring deal, while explaining them both the potential benefits for them from the deal, as well as their commitments
• The commitments of your clients in a potential factoring deal are restricted to obtaining their written consent to the assignment of receivables in favour of UBB Factoring, to their transferring of payments under the assigned invoices to an indicated account of the factor company, as well as to their confirming on a regular basis that certain invoices are valid and payable. Buyers are not parties to the factoring agreement.

• Financial receivables, originated from validly made deliveries between a buyer and a seller, for which invoices have been issued under deferred payment terms
• Receivables, non-matured as at the assignment date
• Receivables that are not encumbered in favour of third persons
• Receivables, which assignment is not prohibited by law or by virtue of the trade contract between a Seller and a Buyer
• Receivables, which are not subject to offsetting against counter receivables of the Buyer from the Seller

No, it is not mandatory.