RAIFFEISEN FACTORING EOOD is a company registered in August 2007, 100% owned by RАIFFEISENBANK (BULGARIA) EAD
What is FACTORING?
Raiffeisen Factoring is a package of financial services, including one or more of the following elements: - Financing of commercial receivables on deferred payment terms, without additional security;
- Administration and collection of trade receivables;
- Risk coverage;
WHY FACTORING? - Release of cash flow immediately after invoice issuance, thereby improving overall liquidity of the Company. The financing levels increase in line with the increase of the trade turnover of the Company.
- Factoring allows the Company to offer more favorable terms of trade to its debtors than its competitors, as well as to attract new clients, offering deferred payment terms to them;
- The cash flow optimization achieved through Factoring allows the Company to get discounts for early payment from its suppliers;
- The financing will be transferred to the Company’s current account and thus available for working capital needs.
ADVANTAGES OVER THE CLASSICAL WORKING CAPITAL FINANCING
- The Factoring is a flexible instrument, allowing the Company to increase the levels of its financing in line with the increase of its trade turnover, thus ensuring cash flow for its Growth;
- No additional collateral is required;
- Faster process of approval and more flexibility compared to the classical working capital loan;
- As the financing, received against commercial receivables is not a loan in its nature, it doesn’t increase the leverage of the Company;
- The Company may effectively reduce its administrative expenses, committing the trade receivables collection and the maintenance of the invoice register to the Factor - Rаiffeisen Factoring EOOD;
WHICH RECEIVABLES ARE FACTORABLE: - Existing trade receivables, ensuing from delivered good and/or services;
- Transferable receivables;
- Receivables free from liens and burdens;
- Receivables which have not matured yet;
- Receivables ensuing from invoices with deferred maturity, issued in compliance with all regulations of the Bulgarian Law of Accounting;
- Receivables, which are not subject to offsetting against liabilities;
COMPANIES WHICH MAY BENEFIT AND ARE SUITABLE FOR FACТORING
- Production and Trading companies, delivering goods and/or services on deferred payment terms ranging between 20 and 180 days;
- Suppliers executing regular deliveries, for which invoices are issued in compliance with Bulgarian legislation and for which payment is made via bank transfers;
- Minimal invoice value: BGN 100
- Companies which are not economically related to the debtors, presented for Factoring;
HOW DO YOU GET STARTED?
1. You negotiate the terms of the assignment with Raiffeisen Factoring EOOD;
2. You notify your clients of your decision to use the services of Raiffeisen Factoring EOOD and enclose payment instructions to the Debtors to make their payments on the account of Raiffeisenbank Bulgaria EAD;
3. Your clients confirm to the Factor the receipt of the notification and agree to remit payment to the designated account of the Factor;
4. You deliver the goods and services to your clients, in compliance with the conditions of the commercial contract and issue an invoice, a copy of which is forwarded to the Factor;
5. Within one working day from the receipt of the invoice, the Factor - Raiffeisen Factoring EOOD, advances up to 90% of the nominal value of the invoice (VAT included);
6. Raiffeisen Factoring EOOD administrates and collects the trade receivables, ensued from the assigned invoices;
7. Upon receivables collection, Raiffeisen Factoring EOOD transfers to the Company the difference between the nominal value of the invoice and the advance amount.
CONTACTS:
Todor Chanev - Tel. + 359 2 91 985 370, Mobile: + 359 884 114 822,
Fax: + 359 2 946 1152, E-mail: Todor.Chanev@raiffeisen.bg Vladimir Vachkov - Tel. + 359 2 91 985 376, Mobile: + 359 885 444 355,
Fax: + 359 2 946 1152, E-mail: Vladimir.vachkov@raiffeisen.bg | 