This is a loan for existing receivables, past due or not, due to a company (Assignor) mainly from a Public Administration (Assigned Debtor).
This product is regulated by Italian Law no. 52 of 1991 on Factoring.
The assignable receivables, either past due or maturing, arise from commercial supplies and there must be no prohibition against assignment.
For assignments relating to Public Administrations, the Assignor must be in order with payments to the tax authorities and social security institutions.
Objective
Financing companies that have receivables due from Public Administrations (Ministries, Regions, Provinces, Municipalities, Local Health Authorities, Public Hospitals, etc.).
How
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.
Type of Receivables
Past due or maturing, arising from commercial supply relationships. The assignor must be in order with payments to the tax authorities and social security institutions.
Price
Takes into account market rates (with a spread on the Euribor for the period), 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