Factors

 

Bank of Cyprus Factors is a member of  FCI, the largest Factoring network association in the world, covering more than 60 countries with 200 members worldwide.

What Factoring is and what it provides to a business

Factoring is a financial transaction in which a business sells its trade receivables to a third party (called a factor) at a discount. A business will sometimes factor its receivable assets to meet its present and immediate cash needs.

It is a collaboration between the client and a specialized financial intermediary (a Factor), which assumes accounting, management and collection of trade receivables.   Additionally, liquidity is provided to the business through the discounting  of receivables which, under certain conditions, the Factor may undertake to insure against default of the debtor.

1. Services
2. Products
3. Factoring Cost
4. Internet Factoring
5. Contact Us

 

1. Services

At Bank of Cyprus Factors we offer you a complete and flexible combination of services that include financing, administration and insurance of your trade receivables in order to immediately satisfy your needs.

  • Liquidity
  • Administration and Collection
  • Debtor Insurance

Liquidity

We offer you immediate and permanent solution to your cash flow problems, by converting credit sales invoices into cash.

Administration and Collection

We take full responsibility and remove the burden of sales ledger administration, by allowing your staff to focus on the promotion of the company's business.

Debtor Insurance

We offer you protection against bad debts allowing you to plan ahead and organize your future business activities with more safety and confidence. You can choose to insure your debtors either on a whole ledger basis or selectively and at the same time you can remove insured debtor balances from your balance sheet figures thus improving your business's financial statements.

 

2. Products

Our products are especially designed so that they flexibly combine and offer a package of services that best meets your needs.

Domestic Factoring with Recourse
Liquidity - Administration - Collection

Domestic Factoring with Recourse is a product that combines two services. It is designed to offer simultaneous professional sales ledger administration and debt collection along with discounting of trade receivables created through trade transactions among Cyprus based companies.

Domestic Factoring without Recourse
Liquidity – Administration – Collection - Insurance (85%)

This product combines all our services. It includes administration of the sales ledger, debt collection and discounting of trade receivables (services offered by Domestic Factoring with Recourse) and also debtor insurance of up to 85% of the value of the trade receivables against the danger of debtor default and prolonged delays on payments. In this way, we cover any possible credit risk guarding you against any of your debtors' possible inability to pay.

In the event of buyer insolvency or payment failure, Bank of Cyprus Factors will pay the client 85% of the invoice value in a period of approximately 6 months after the due date of the invoice, provided that there is no dispute between the client and the buyer regarding the balance of the debt.

Confidential Invoice Discounting With Recourse
Liquidity

We finance up to 75 % of the business's approved sales ledger, while you continue to manage your debtor administration and collection of trade receivables. We discount your credit invoices assigned to us by submitting us a monthly debtor ageing analysis. Once you collect from your debtors, you deposit the collected amounts in our Bank account. We then pay you back the amount of the invoices that has not been prepaid.

This product is ideal for rapidly expanding businesses with increasing working capital requirements, without dealing with collection problems.

Confidential Invoice Discounting without Recourse
Liquidity - Insurance (85%)

This product is an insurance scheme, ideal for businesses that wish to selectively insure their debtors confidentially against bad debts. It can be combined with financing of up to 75% of the business's approved sales ledger. The business continues to manage its sales ledger and the collection of receivables. The insurance cover of your debtors reaches up to 85% of the invoiced value against the risk of their default or their prolonged delay of payment of the debt.

In the event of buyer insolvency or payment failure, Bank of Cyprus Factors will pay the client 85% of the invoice value in a period of approximately 6 months after the due date of the invoice, provided that there is no dispute between the client and the buyer regarding the balance of the debt.

Discounting of Post-dated Cheques
Liquidity - Administration

Discounting of post-dated cheques service is designed for businesses which accept post-dated cheques from their debtors. It is a purely financing scheme based on the pledging and discounting of debtors' post-dated cheques.

Keeping the post-dated cheques until maturity date may cause serious liquidity problems to your business. With the use of this product we can enhance your business's liquidity converting up to 75% of the value of post-dated cheques held, into immediate cash. In addition we free you from the administration and management of these cheques.

Export Factoring with Recourse
Liquidity - Administration - Collection

Export Factoring with Recourse is a product which combines two services. Professional sales ledger administration, collection and discounting of trade receivables of your debtors located abroad are all offered collectively.

Export Factoring without Recourse
Liquidity - Administration - Collection - Insurance (100%)

This product is a package of services that includes finance of your overseas trade receivables, professional sales ledger administration and collection of trade receivables, ongoing evaluation and full credit protection (100% insurance) against the possible default of debtors abroad.

The product operates through the FCI network, which uses the 'Two Factor' system. In this way, you can benefit from the specialized skills of our foreign correspondents and can be confident that your clients are transacting with a Factoring company in their own country and language.

In the event of buyer insolvency or payment failure, Bank of Cyprus Factors will pay the client 100% of the invoice value in a period of 90 days after the due date of the invoice, provided that there is no dispute between the client and the buyer regarding the balance of the debt.

Import Factoring

This product addresses Cypriot businesses importing products from abroad. Through our cooperation with the FCI group it is possible for Cypriot importers to enable their foreign suppliers the use of discounting, administration, collection and insurance cover services for their business trade receivables.

The exporter, who in this case is abroad, must conclude an Export Factoring agreement with a Factoring company in his country who is a member of the FCI group.

By using this product the importer is in a position to secure favourable open account payment terms from its suppliers abroad and avoid the use of other banking instruments that involve delays and extra costs (e.g. opening letters of credit).

 

3. Factoring Cost

The total cost of our services depends on the type of product you choose and consists of two independent charges:

  • The discount charge: this is equivalent to the current base rate of Bank of Cyprus, plus a percentage called spread which is applied on the prepaid amount.
  • The administration charge: a percentage applied on the value of invoices which varies according to the type of service.  

  

4. Internet Factoring

A secure, quick and convenient gateway enabling you to access in numeric or graphical form, information about the real time status of your own and your clients’ accounts.

 

5. Contact Us

Yiannos Nicolaides
Manager Factors
yiannos.nicolaides@bankofcyprus.com

By Phone

+00(357) 22 127096

By Fax
+00(357) 22 120176

Postal Address:

BANK OF CYPRUS PUBLIC CO LTD - FACTORS
134 Limassol Avenue
2015 Strovolos-Nicosia
Cyprus

By E-mail
info@factors.bankofcyprus.com

 

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