Non-recourse factoring was created to allow a company that has a receivable (the Assignor) to immediately collect that receivable, speeding up recovery times and facilitating cash flows.
With this type of product, the company assigns its portfolio of receivables to the Bank, in return for the payment of a price, and the Bank acquires ownership of those receivables.
The assignment of the past due or maturing receivable arising from commercial supplies, is made on a definitive basis, in compliance with the international accounting standards.
For assignments relating to Public Administrations, the Assignor must be in order with payments to the tax authorities and social security institutions.
Objective
Providing the supplier (Assignor) with the immediate collection of the trade receivable, speeding up recovery times and facilitating cash flows.
How
The company assigns its portfolio of receivables to Banca Sistema, in return for the payment of a price, and Banca Sistema acquires ownership of those receivables.
Type of Receivables
Past due or maturing, arising from commercial supply relationships with Public Administrations (Ministries, Regions, Provinces, Municipalities, Local Health Authorities, Public Hospitals, etc.).
Price
Takes into account market rates (based on estimated collection times), the servicing fee and the debtor's rating.
Documents for preliminary analysis
- Certificate of Good Standing, Deed of Incorporation and Articles of Association
- Portfolio with list of names proposed for non-recourse factoring and the related amounts
Documents for the approval
- Last two financial statements and interim report
- List of bank credit lines
- Documentation certifying tax compliance
- Supply contracts, invitation to tender, order