Corporate

Factoring

We know it is difficult when the payments are late, and therefore we can assure the required liquidity for the company’s current activity by the partial or total funding of your invoices.

  • Internal factoring
  • Export factoring
  • Reverse factoring

Internal factoring

Characteristics

  • Factoring services: funding, management, collection, hedging the default risk.
  • Types:
  • Recourse factoring – implies taking over the risk to the adherent (the seller) and the right of Exim Banca Romaneasca to go against it to recover the financing amount if the amounts were not collected from the debtor on the stipulated due date;
  • Non-recourse factoring – implies taking over the risk to the internal debtor (the buyer), risk which is covered by the Factor and/or an insurance company.
  • Currency: RON.
  • Maximum level of financing: up to 90% of the counter value of assigned invoices.
  • Payment deadline: maximum 120 days since the invoices issuance date.

Warning:

  • Invoiced products/services should be delivered/performed,
  • Invoices should not be overdue,
  • Invoices should not be assigned in favor of other obligations,
  • The shareholders should not be connected to the seller and debtor,
  • The debtor should not be under insolvency or bankruptcy procedures.

Advantages

  • Financing according to the needs, without material guarantees;
  • Rapidity in performing operations related to factoring services package, after the transactions approval and signing the factoring contract;
  • Improvement of liquidity;
  • Flexibility in funds use, depending on immediate needs, without any justification of the payments;
  • Possibility to offer longer payment terms to internal partners;
  • Improvement of debtors’ payment discipline as a result of an active management and collection conducted by the Factor;
  • Reduction of management expenses – the Factor keeps the record of receivables.

Export factoring

We offer external factoring services at international standard, as Exim Banca Romaneasca is a full rights member of  Factors Chain International, the most important international organization of that profile.

Characteristics

  • Factoring services: funding, management, collection, hedging the default risk.
  • Types:
  • Recourse factoring – implies taking over the risk to the exporter and the right of Exim Banca Romaneasca to go against it to recover the financing amount if the amounts were not collected from the external debtor on the stipulated due date;
  • Non-recourse factoring – implies taking over the risk to the external debtor (the importer), risk which is covered by the import Factor or an insurance company/the bank.
  • Currency: foreign currency (the currency of the commercial contract);
  • Maximum level of financing: up to 90% of the counter value of assigned invoices;
  • Payment deadline: maximum 180 days since the invoices issuance date;

Advantages

  • Financing without material guarantees;
  • Rapidity – invoices payment within maximum 24 hours since their presentation, after the transactions approval and factoring contract signing;
  • Flexibility in funds use –  without any justification of the payments destination;
  • Liquidity improvement;
  • Assessment of importers’ creditworthiness by means of information obtained from the external factoring company;

Reverse factoring

Characteristics

  • Financing solution initiated by the buyer (the party making the order) in view of supporting its suppliers to easier finance their receivables;
  • Financing percentage: maximum 85%;
  • Percentage of default risk covering: 85%;
  • Maximum accepted payment term: 120 days;
  • Period of default risk covering: 90 days (since the commercial due date).

Advantages

Debtor’s advantage

  • Preserving an efficient relationship with suppliers;
  • Getting longer payment terms;
  • Reduction of operating expenses related to banking transfers, as invoices payment is centralized to a single collecting entity;
  • Flexibility in suppliers’ payment => commercial discounts obtained from suppliers.

Adherents’ advantage

  • Financing before maturity => cash flow optimization;
  • Default risk covering;
  • Simplification of invoices management procedures;
  • Cutting down collection failure risk of accepted invoices.