More information

• What is Factoring and what it offers 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.

• What services do you offer?

  Services

  Bank of Cyprus Factors offers 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

  We offer you immediate and permanent solutions 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, 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 organise 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' financial statements.

• What products best suit my needs?

  Our products are specially designed so that they flexibly combine and offer a package of services that best meets your need at any given time.
  
  

  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 (90%)

  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 90% of the value of the trade receivables against the danger of debtor default, as well as prolonged delays on payments.

  In the event of buyer insolvency or payment failure, Bank of Cyprus Factors will pay the client 90% 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 when you submit to 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.

   

  Discounting of Post-dated Cheques

  Liquidity - Administration

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

   

  ExportFactoring 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.

   

  Import Factoring

  This product is designed for Cypriot businesses importing products from abroad. Through our cooperation with the FCI group, we enable Cypriot importers to ensure for 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 suppliers abroad and avoid the use of other banking instruments that involve delays and extra costs (e.g. opening letters of credit).

  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.

• What does Factoring cost?

  What does 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.  
• What is Internet Factoring?

  A secure, fast 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.

• How do I contact you?

  Martha Vakana

  martha.vakana@bankofcyprus.com

  Phone: +00(357) 22127040

  Fax: +00(357) 22120176

  Email: info.factors@bankofcyprus.com

  
  Postal address:

  BANK OF CYPRUS PUBLIC COMPANY LTD - FACTORS

  97 Kyrenia Avenue

  2113 Aglanjia - Nicosia

  Cyprus