Factoring

  3. Factoring
What is Factoring?

Factoring is a tailor-made package of services designed to secure your debt collection and improve your cash flow, thereby offering you a competitive edge in your markets, both domestic and abroad.

Companies trading on open account terms can assign their receivables to FIMBank and benefit from:

  • Invoice / sales ledgering
  • Debt collection
  • Risk protection
  • Financing
Who can use it?

All companies with a stable portfolio offering credit terms up to 180 days to corporate buyers can make use of factoring services. The receivables must result from completely fulfilled contracts by the seller. 

Factoring benefits
  • Professional collection services in Malta and in more than 80 countries
  • Protection against bad debts (up to 100%)
  • Financing (up to 90% of invoice value available immediately)
  • Buyer's credit assessment (on regular basis)

When does factoring apply better?
  • Sales on open account terms
  • Continuous business relationship
  • Clear sales title / enforceable receivables
  • Clean / clear performance of the seller
  • No counter-trade
  • Portfolio spread over a number of buyers
The Pricing

The pricing for factoring has three major components:

  • Fee to set up the factoring package
  • Charge applied to the invoice value for the services rendered other than financing
  • Discounting or interest levied for the financing (applicable to the funds-in-use on a daily balance). This will depend on the interest rates for different currencies

The price may also be conceived as an 'all-in' charge

How can you apply?

Please request a meeting by contacting us at:

Mediterranean Factoring Department (MED Factors)
FIMBank p.l.c.

Tel: +356 21322100
Fax: +356 23280109
E-mail

Factoring around the World

There are more than 3,000 factoring companies registered in more than 80 countries worldwide. The annual turnover of businesses using factoring services approaches the EUR 2.35 trillion, out of which some EUR 490.114 billion represents cross border business. There are several international and national factoring associations promoting this service and its variations in the different national markets and internationally, in order to assure a global standard vision for this industry. FIMBank is a member of the two international factoring associations, Factors Chain International (FCI) and the International Factors Group (IFG), thus allowing it to benefit from a worldwide pool of expertise and the largest possible network of service providers.

FIMBank sees factoring as a highly-specialized financing tool that is complementary to its more traditional trade service products, and vital to the growth and development of  small and medium sized businesses. Factoring provides exporters a risk mitigation alternative to letters of credit and with it the opportunity to grow their business.  FIMBank sees factoring as an important tool for the growth of international trade, especially in developing countries exporting to the more developed countries.

In 2004, FIMBank became a partner in a joint venture in India, Global Trade Finance Pvt Limited GTF, along with the EximBank of India, the International Finance Corporation (part of the World Bank) and Bank of Maharashtra. In 2008, FIMBank sold its equity stake to the State Bank of India GTF, India's first integrated factoring and forfaiting company and created the 'blueprint' for FIMBank's factoring strategy. FIMBank has a long term plan to promote similar joint ventures in other emerging markets, with the aim of building a global network. In 2007 together with the International Finance Corporation IFC part of the World Bank Group and Commercial International Bank CIB FIMBank set up Egypt Factors. In 2008 it established MENAfactors in Dubai, as a 100% subsidiary, servicing the Middle East and Northern Africa region. MENAfactors has meanwhile expanded its activities into Lebanon and other regional expansions are planned. Apart from the MENAFactors in Dubai and Egypt Factors in Egypt, FIMBank's international network today includes  India Factoring  in India (established in 2010). BRASILFactors in Brazil (established in 2011) and LATAM Factors in Chile (acquired in 2014). The Bank’s MED Factors department in Malta and branch in Athens, Greece offer a comprehensive range of factoring services.