Factoring
How does factoring work?
The bank purchases short-term receivables you have from your buyers/debtors based on documents which show the existence of receivables (invoices, shipment notes, temporary situations, etc.).
The procedure is very simple. A factoring agreement is entered into, by which you sell your receivables from debtors arising from the delivery of goods and/or performance of services to the Bank, and you get your money immediately.
You can realize the factoring service in several ways:
- Factoring with a discount – financing is done by way of immediately paying the total value of the invoice minus discount,
- Factoring with advance payment – the agreed amount of advance payment (which usually amounts to 75–95% of the invoice value) shall be immediately paid to your account, minus the factoring fee. The remaining part of the invoice value, minus the factoring interest calculated against the amount of advance payment, shall be paid to your account after the invoice becomes due, i.e. after the Debtor settles their obligations.
- Discount of outstanding instalments according to payment cards of Banca Intesa is "advance payment" (discounting) according to outstanding instalments based on sales in instalments with payment cards issued by the bank.
- The Factoring Department may realize loans based on receivables, assigned receivables, lease, pledge, bills of exchange, as follows:
- Loan based on assigned receivables: represents an investment where the collection instrument may be based on assignment/ pledge of receivables/ currency bills of exchange.
- Loan based on receivables: represents an investment given based on expected inflows from existing or future receivables.
Liquidity
Advance payment of the agreed amount of funds in a very short period significantly improves the liquidity of your company, which enables you to settle trade payables sooner and thus take advantage of potential discounts they offer.
Creditworthiness
By converting short-term receivables into liquid assets, factoring as a means of financing does not burden your company's balance.
Managing receivables
Since the bank undertakes to perform all activities regarding posting and monitoring invoice maturity, you achieve significant savings in terms of time and costs.
Collection of receivables
Debtors / buyers are significantly more disciplined in settling their obligations when a strong bank is behind the receivables.
Competitiveness
By transferring receivables, the collection risk is reduced and liquidity is increased, which enables you to offer longer payment deadlines to your buyers and thus increase sales.
You can realize the factoring service in several ways:
- Factoring with a discount – financing is done by way of immediately paying the total value of the invoice minus discount,
- Factoring with advance payment – the agreed amount of advance payment (which usually amounts to 75–95% of the invoice value) shall be immediately paid to your account, minus the factoring fee. The remaining part of the invoice value, minus the factoring interest calculated against the amount of advance payment, shall be paid to your account after the invoice becomes due, i.e. after the debtor settles their obligations,
- Discount of outstanding instalments according to BIB payment cards – is "advance payment" (discounting) according to outstanding instalments based on sales in instalments with payment cards issued by the bank.
The Factoring Department may realize loans based on receivables, assigned receivables, lease, pledge, bills of exchange, as follows:
- Loan based on assigned receivables: represents an investment where the collection instrument may be based on assignment/ pledge of receivables/ currency bills of exchange,
- Loan based on receivables: represents an investment given based on expected inflows from existing or future receivables.
Contact
For more information, contact your client manager through e-mail faktoring@bancaintesa.rs or call:
- 011 201-1631
- 011 201-1582
- 011 201-1435
- 011 301-2517
