What is it
Factoring is a flexible financial product in the domestic market, which enables your company to assign its receivables together with the operating costs that accompany them (collections) to our Bank, which undertakes their management.
In addition, Attica Bank finances these receivables, assesses on an ongoing basis the solvency of your debtors and provides credit risk insurance in case of non-payment. In particular, factoring can include some or all of the above services and can be tailored to your business needs.
We undertake the following types of factoring:
We manage and collect your invoices, while at the same time we finance you, ensuring the necessary liquidity for the development of your business. During the course of our relationship, we assess the creditworthiness of your existing and new clients while keeping you informed of any developments in a timely manner.
We manage and collect your invoices, while at the same time we finance you and secure you from the potential inability to pay your debtors.We relieve you of the time-consuming process of administration and collection and create the right conditions for the safe development of your business.
We manage your invoices and finance you, but the collections are made by your business, which acts as our Agent. Specifically, you handle the collection of the securities (or cash) and deliver them directly to the Bank. In this way, you maintain contact and communication with your customers and at the same time ensure the necessary liquidity for the development of your business. The relationship with the Bank can either be disclosed to your customers (Agency factoring) or not (Confidential factoring). In special cases, insurance coverage of the credit risk is available.
We handle the management and collection of your invoices, freeing you from the time-consuming process of collecting and accounting for them, helping you to focus on your sales.
Workflow
In cases of domestic factoring the procedure that is usually followed is as follows:
Upon the sale of goods/services between your company (A) and your customers (B), the issuance of an invoice and the receipt of the goods.
(1) provided that our Bank has checked the creditworthiness of your customers and agreed to the assignment of the specific invoices), you send us the copies of the invoices.
(2) you inform us of any special payment arrangements. Your customers (B) are then also informed of the assignment of the invoices to Attica Bank.
After checking the formalities on the invoices, our Bank finances the value of the invoices.
(3) at the agreed rate and undertakes the management and collection of these receivables.
At the end of the credit period and the collection of the receivables by us.
(4) final settlement is made.
(5) during the repetition and development of the above process, we monitor the flow of transactions and developments in the specific line of business and inform you immediately about the solvency of your customers/debtors or any other problem that arises.
What are the benefits?
- Ensure and enhance liquidity on an ongoing basis, depending on your sales.
- Efficient management and collection of your receivables.
- Reduction in the operational costs of managing and collecting your receivables.
- Improved sales conditions and competitiveness.
- Immediate exploitation of business opportunities.
- Continuous proactive credit risk monitoring.
- Creation of secure growth conditions for your business (credit risk coverage).
- Improvement of the balance sheet image, in cases of factoring without recourse.