One off repurchase of receivables
One off repurchase of receivables is a product that allows our Clients to sell their receivables at times when they are in need of liquid assets when and they are not able to reach other sources of short-term financing. The Client has a clearly defined receivable (invoice) that he wants to sell.
- Non-recourse factoring - Factor issues and advance payment (in the amount of 70-100% of the nominal value of the invoice) and assumes responsibility over the management and collection of receivables from the Customer, i.e. the Factor assumes all three functions of factoring - financing, receivables management and del credere risk (the risk of collection ). It is common to inform the Customer of the transfer of receivables from the Client to the Factor.
- Recourse factoring – in this instance the Factor repurchases the Client's receivables without assuming del credere risk, i.e. the Factor assumes two functions of factoring - financing and receivables management. The Client retains responsibility for collecting the receivable from the Customer through a special contractual provision towards the Factor.
Assignment of Promissory notes
This product enables the collection on a promissory note before the maturity date.
- Assignment of a promissory note with recourse - the seller of the promissory note is not paid out the discounted value but an advance on the promissory note - the nominal amount of the note minus interest expense, fees and the foreign exchange rate difference. The Factor retains the right to recourse from the Client if, upon maturity, the promissory note is not settled.
- Non-recourse assignment of a promissory note– the product is identical to the previous one, but without recourse to the Client (Factor does not require instruments of guarantee from Clients).
The Factor pays the Clients payables to suppliers and the Client pays the Factor upon the due date.
With this product, the Client takes on the role of Customer. The product enables the purchase of goods from domestic Customers (suppliers) with deferred payment. The Clients obligations may be paid prior the due date, and the Client can take up any potential discounts offered by the supplier (in this case the Client pays Factor at the first due date of the invoice) or the Clients’ obligations are paid on the invoice due date, where the Client will pay the Factor after an agreed number of days after the due date. The Client thereby gains a further period, during which he may sell the products whose purchase has already been settled.