Flexible use of obtained funds, depending on the requirements of the trade companies.
Saving the time dedicated to management of invoices and reducing the administrative expenses given that CEC BANK SA takes-over the debt records and provides the Client with the records of debts executed by factoring.
Ready response to factoring applications.
Convenient loan term, with the possibility to extend the factoring facility for new similar terms.
Eligible adhering entities: Legal entities that sell products, provide services or carry out paid works for a period of up to 180 days, based on commercial contract / framework contract / framework agreement / order or orders.
Eligibility criteria apply to the adhering entity, assigned debtor and commercial contract in order to counteract credit and trade risk.
Type of financing: Facility of the type Revolving Global Limit, granted on the basis of the Factoring Contract, concluded with the adhering entity, with draw-downs and reimbursements as invoices are presented and collected.
Destination of the Factoring Facility: payments in respect of the adhering entity’s activity, without the request of supporting documents concerning the use of funds.
The term of validity of the Factoring Facility: a maximum of 12 months, with the possibility to extend the facility for new similar periods.
The Factoring Facility maximum value granted for each assigned debtor will be determined based on the total turnover of the adhering entity, the turnover registered for that trade relationship in the previous year or forecast for the current year, taking into account the deadlines for the collection and the seasonal character of the activity or the contractual value remaining to be achieved, as well as the exposure limit established for the adhering entity.
The maximum value of financing for an assigned debtor (total available factoring): generally, a maximum of 80% of the Factoring Facility given for an assigned debtor.
The amount of financing awarded for each invoice: maximum 80% of the total value or fractions of the total value of the assigned invoice / receivable value of the assigned invoice (with or without VAT - for adhering entities which have opted to pay split VAT), but not more than the amount remaining to be used from the maximum amount of financing for each assigned debtor. Where by analyzing the commercial relationship carried out in the last 12 months preceding the request for factoring, there are results that advance payments / installments or deductions / withholding / compensations greater than 20% of the value of trade claims, the amount of financing for each assigned debtor and for each invoice will be adjusted downward accordingly.
Period of use (to make the first draw-down): up to 6 months from the date of signing the Factoring Contract / special conditions.
Grace period: 30 days after the due date of invoices accepted for funding while, within it, penalties do not apply for the failed collection of invoices / failed reimbursement of financing.
- Assignment for guarantee purposes (pursuant to art. 2347 of the Civil Code) of claims arising from commercial contract / framework contract / framework agreement / order or orders, occurred between the adhering entity and the assigned debtor, materialized in invoices accepted for factoring, with the notification of the assigned debtor;
- Real estate mortgage on the credit balances of the current accounts opened with the Bank by the adhering entity;
- Real estate mortgage on the credit balance of the assignation account open with the Bank;
- Guarantee deposit contract concluded with the majority shareholders / majority associates / managers and, where appropriate, with their spouse, or promissory notes availed by shareholders / managers and their spouse, if applicable.
Reimbursing of Factoring Facility granted will be made from the following:
- Collection of invoices financed;
- Funds from the unavailable factoring account;
- Collection of assigned and non-funded invoices;
- Funds in current accounts of the adhering entity and in other accounts;
- Damages paid by the insurance company;
- Other sources of the adhering entity.
Early reimbursement from the collection of invoices prior to their maturity is made without the early reimbursement fee.