Early payment of a percent of the transferred invoices’ value, on the date of their submission to CEC BANK SA agency; as such, the “payment on due date” becomes “payment in sight”.
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 clients: Resident legal entities which 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 / commercial relationship 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 is determined based on the turnover registered in 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 credit limit established by the insurance company for the assigned debtor.
The maximum value of a debtor's financing (total available factoring): generally, a maximum of 80% of the factoring facility granted for each assigned debtor.
The maximum value of the total available factoring for the assigned debtor may be greater than 80%, up to the percentage of compensation within the contract / insurance policy, but not more than 95%.
The amount of financing awarded for each invoice (available factoring granted for one invoice): generally, a maximum of 80% of the total value of the assigned invoice / receivable value of the assigned invoice (values with or without VAT - for adhering entities who have opted to pay split VAT) but not more than the amount remaining to be used from the financing maximum amount for each assigned debtor.
In conjunction with the maximum value of the funding for an assigned debtor, the percentage of financing mentioned above can be greater than 80%, up to the percentage of compensation within the contract / insurance policy.
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/accounts opened with the Bank;
- Assignment of rights by way of compensation arising from insurance policies concluded by the adhering entity for the assigned debtors (the policy of insurance issued by an insurance company accepted by CEC Bank);
- For the case of non-payment of the damages/compensations from the fault of the adhering entity (commercial dispute, failure to comply with the requirements of the insurance policy, failed notification of the amounts with exceeded due date etc.), a guarantee deposit contract concluded with 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 financing granted under the factoring facility will be made from the following:
- Funds from the unavailable factoring account;
- Damages paid by the insurance company;
- Collection of assigned and non-funded invoices;
- Funds in current accounts of the adhering entity and in other accounts;
- Other sources of the adhering entity.
Early reimbursement from the collection of invoices prior to their maturity is made without the early reimbursement fee.