See what are the steps to follow to benefit from the factoring solutions from CEC Bank.
Anticipated payment of a percentage of the value of the assigned invoices, on the day of their presentation to the territorial unit of CEC Bank; thus, "cash in on due date" turns into "cash in on the sight".
Flexible use of funds obtained according to the needs of companies.
Saving the time dedicated to managing the invoices and reducing the administrative expenses, as a result of CEC Bank taking over the receivables record and making available to the Client the situations of receivables through factoring.
Reducing the risk of non-collection of commercial receivables by amicably collecting them by the bank, as well as by covering the risk of non-payment. Quickly resolving the factoring request.
Convenient loan duration, with the possibility of extending the factoring facility over new similar periods.
Eligible adherent clients: Resident legal persons, who sell products, provide services or carry out works with payment on due date, based on commercial contract/framework contract/framework agreement/order/orders.
The eligibility criteria applies to the adherent, the obliged debtor and the commercial contract/commercial relationship in order to counteract the credit and commercial risk.
Financing type: Global revolving limit type facility granted on the basis of the factoring contract concluded with the adherent, with withdrawals and reimbursements as the presentation and the collection of the invoices, respectively.
Destination of the factoring facility: payments related to the activity of the adherent, without requesting supporting documents regarding the use of the availabilities.
The term of validity of the factoring facility: maximum 12 months, with the possibility of extending the facility for new similar periods.
Accepted payment deadline of invoices: maximum 180 days from the date of issue of the invoice/delivery/acceptance to the payment of the invoice; in the case of invoices issued to assigned debtors who are active in agriculture, the maximum payment deadline can be 300 days.
The maximum value of the factoring facility granted to the assigned debtor is determined according to the turnover recorded on the respective commercial relationship in the previous year or forecast for the current year, taking into account the payment terms and the seasonality of the activity or the remaining value of the contract, as well as the limit of non-payment risk coverage established for the assigned debtor.
The maximum value of the financing on an assigned debtor (total factoring available): in general, maximum 90% of the value of the factoring facility granted on the assigned debtor.
The value of the financing granted on each invoice (factoring available granted on an invoice): in general, maximum 90% of the total value of the assigned invoice/the receivable value of the assigned invoice (VAT or non-VAT values - for non-taxable operations from the point of view of VAT and operations with reverse charge) but no more than the remaining amount to be used from the maximum value of the financing on each assigned debtor.
Percentage of non-payment risk coverage: maximum 90% of the outstanding balance of receivables accepted to cover non-payment risk
Period of use (for the first draw): maximum 2 months from the date of signing the factoring contract/special conditions.
Grace period: 30 days from the expiration of the invoices accepted for financing, and within this period no penalties are applied for not receiving the invoices/non-reimbursement of the financing.
- Assignment of receivables arising from the commercial contract/framework contract/framework agreement/order/orders intervened between the member and the assigned debtor, as well as of all the commercial debts born within the commercial relationship with the assigned debtor, materialized in the assigned invoices, with the notification the assigned debtor; - Mortgage on the credit balances of the current accounts opened at the Bank by the adherent;
- Mortgage on the credit balance of the account/accounts of transfer opened to the Bank;
- Guarantee concluded with the majority shareholders/majority associates/directors and, as the case may be, with their spouse or promissory notes endorsed by shareholders/administrators and their spouse, as the case may be (this covers only the cases of regression, such as a commercial dispute).
The reimbursement of the financing provided under the factoring facility will be made from:
- collecting, in the transfer account, the financed invoices;
- unavailable factoring;
- collection of the assigned and unfunded invoices;
- the availabilities of the current accounts of the adherent and of other accounts;
- other sources of the adherent, if applicable.
The early repayment of the invoice collection before the due date is made without receiving an early repayment commission.