Hellenic Bank commenced offering factoring services in March 1999. Today, our factoring services are staffed by highly experienced personnel in the factoring sector. We are a member of the International Factors Group (IFG) - a major player in the international factoring business, with members in more than 60 countries.
Our aims are to:
- Improve client's cash flow through the discounting of their receivables, without the support of tangible security usually required for traditional banking facilities
- Assist in the collection of receivables and arrange insurance for commercial credit risk, both in the domestic and import/export business
- Assist clients with their sales ledger administration
- Offer custom-made products for the specific needs of each customer
- Develop products and practices so as to achieve the best value for our customers
- To be recognised as a leader in providing capital-based financing.
Benefits for businesses using factoring:
- Probably the best method for financing working capital requirements and short-term liabilities.
- Release working capital normally tied in non-productive areas.
- Bad debt protection for the business.
- Increased sales and revenue by offering better payment terms to debtors.
- Decrease in administrative costs and increased productivity as the management and sales force are freed from debt collection.
Costs of factoring service
The cost depends on the type of services offered, and includes:
a. Factoring fees: Calculated as a percentage on the amount of assigned sales. The rate varies, depending on:
- The financial standing of the company
- The quality and ability of its debtors to pay on time
- The percentage of prepayment
- The period of credit given to debtors
- The type of facility required by the client
The rate usually varies between 0,5% and 1,8% on assigned invoices.
b. Discount charge: Similar to the applicable interest rate and calculated on the daily debit balance of the client's account.
Why choose Hellenic Bank Factoring Services?
- Part of one of the largest financial institutions in Cyprus.
- Extensive network of branches for serving clients and debtors alike.
- Excellent service and support by well-trained and experienced staff.
- Friendly and constructive advice based on the client's credit policy.
- Maintenance of harmonious relationship between clients and debtors.
- Electronic exchange of information with Hellenic Netbanking.