Unique Factoring Services
Financing, collection of receivables We offer you a unique package of Factoring services that include financing, cash flow management and collection of trades receivable, debtor risk assessment/consulting services, credit coverage/insurance and debt management.
Solution to cash flow problems We offer you immediate and permanent solution to your cash flow problems, by converting credit sales invoices into cash or discounting post-dated cheques from your clients.
Discounting of post-dated cheques We discount post-dated cheques of businesses which accept post-dated cheques from their clients. We finance up to 75 % of the business’ approved sales ledger.
Answers to all your questions
Factoring is a financial transaction in which a business sells its trade receivables to a third party (called a factor) at a discount. A business will sometimes factor its receivable assets to meet its present and immediate cash needs.
It is a collaboration between the client and a specialized financial intermediary (a Factor), which assumes accounting, management and collection of all account trade receivables. Additionally, liquidity is provided to the business through the discounting of these receivables which, under certain conditions, the Factor may undertake to insure against default of the debtor.
At Bank of Cyprus we offer you a complete and flexible combination of services that include financing, administration and insurance of your trade receivables in order to immediately satisfy your needs.
We offer you immediate and permanent solution to your cash flow problems, by converting credit sales invoices into cash or discounting post-dated cheques from your clients.
- Administration and Collection
We take full responsibility of the administration and the collection of your business’ sales ledger, by allowing your staff to focus on the promotion of the business’ operations.
- Debtor Insurance
We offer you protection against bad debts allowing you to plan ahead and organize your future business activities with more safety and confidence. You can choose to insure your debtors either on a whole ledger basis or selectively and at the same time you can remove insured debtor balances from your balance sheet figures.
Our products are especially designed so that they flexibly combine and offer a package of services that best meets your needs.
Domestic Factoring with Recourse
Liquidity - Administration - Collection
Domestic Factoring with Recourse is a product that combines two services. It is specifically designed to offer simultaneous professional sales ledger administration and debt collection along with discounting of trade receivables created through trade transactions between Cyprus-based companies.
Domestic Factoring without Recourse
Liquidity – Administration – Collection - Insurance (85%)
This product combines all our services. It includes administration of the sales ledger, debt collection and discounting of trade receivables (services offered by Domestic Factoring with Recourse) and also debtors insurance of up to 85% of the value of the trade receivables against the risk of debtor default and prolonged delays in payments.
In the event of insolvency or payment failure of a debtor, Bank of Cyprus Factors will pay the client 85% of the invoice value in a period of approximately 6 months after the due date of the invoice, provided that there is no dispute of the debt by the debtor
Confidential Invoice Discounting With Recourse
We finance up to 75 % of the business's approved sales ledger, while you continue to manage your debtor administration and collection of trade receivables.
We discount your credit invoices assigned to us by submitting us a monthly debtor ageing analysis. Once you collect from your debtors, you deposit send us directly the collected amounts and we then pay you back the amount of the invoices that has not been prepaid.
This product is ideal for rapidly expanding businesses with increasing working capital requirements, yet without dealing with collection problems.
Discounting of Post-dated Cheques
Liquidity - Administration
Discounting of post-dated cheques service is designed for businesses which accept post-dated cheques from their debtors. It is a purely financing scheme based on the pledging and discounting of debtors' post-dated cheques.
Keeping the post-dated cheques until maturity date may cause serious liquidity problems to your business. We can enhance your business's liquidity converting up to 75% of the value of post-dated cheques held into immediate cash. In addition, we free you from the administration and management of these cheques.
Export Factoring with Recourse
Liquidity - Administration – Collection
Export Factoring with Recourse is a product which combines two services. It can offer at the same time professional sales ledger administration and collection and discounting of trade receivables from your debtors located abroad.
Export Factoring without Recourse
Liquidity - Administration - Collection - Insurance (100%)
This product is a package of services that includes finance of your overseas trade receivables, professional sales ledger administration and collection of trade receivables abroad, ongoing evaluation and full credit protection (100% insurance) against the possible default of debtors abroad.
The product operates through the FCI network, which uses the ‘Two Factor’ system. In this way, you can benefit from the specialized skills of our foreign correspondents and you can be confident that your clients are transacting with a Factoring company in their own country and language.
In the event of buyer insolvency or payment failure, Bank of Cyprus Factors will pay the client 100% of the invoice value in a period of 90 days after the due date of the invoice, provided that there is no dispute of the debt by the debtor.
This product addresses to Cypriot businesses importing products from abroad. Through our cooperation with the FCI Group, it is possible for Cypriot importers to enable their foreign suppliers the use of discounting, administration, collection and insurance cover services for their business trade receivables.
The exporter, who in this case is abroad, must conclude an Export Factoring agreement with a Factoring company in his country which is a member of the FCI Group.
By using this product, the importer is in a position to secure more favourable open account payment terms from his suppliers abroad and avoid any extra costs and delays deriving from the opening of letters of credit.
The total cost of our services depends on the type of product you choose and consists of two independent charges:
- The discount charge: this concerns the amount you borrow and is equivalent to the current base interest rate of Bank of Cyprus, plus an interest margin.
- The administration charge: it concerns the cost of the services offered and is calculated as a percentage applied on the value of invoices/cheques that are assigned to our services.
A secure, quick and convenient gateway enabling you to access in numeric or graphical form, information about the real time status of your own and your clients’ accounts.
Bank of Cyprus Factors is a member of FCI, the largest Factoring network association in the world, covering more than 60 countries with 200 members worldwide.