The assignment of the receivable with Maturity Factoring involves the payment of the consideration to the assignor company at a mutually agreed date (the maturity credit date).
As a rule, the consideration for the assigned receivables is credited to the company at the original maturity date, with the possibility of obtaining an advance payment. The assigned debtor is granted a payment deferral, at a cost, from the original maturity up to a date agreed with the Bank.
Maturity Factoring can be either non-recourse (the risk of default of the Debtors is entirely borne by the Bank) or recourse (the risk of default of the Debtors is borne by the assignor company).
For the receivable to be paid by the Bank, it must be recognised as certain, liquid and payable by the assigned debtor.
Objective
Improving the management of supply relationships between the company (assigned debtor) and the supplier (assignor) by offering the debtor company the possibility of receiving payment deferrals.
How
The consideration for the assigned receivables is credited to the assignor at the original maturity date, plus several days, with the possibility of obtaining an advance payment.
Type of Receivables
The receivable must be declared as certain, liquid and payable by the assigned debtor.
Price
Takes into account market rates (based on estimated collection times), the servicing fee and the debtor's rating.
Documents for preliminary analysis
- Portfolio with list of names proposed for Maturity Factoring and the related amounts
Documents for the approval
- Certificate of Good Standing, Deed of Incorporation and Articles of Association
- Last two financial statements
- List of bank credit lines
- Documentation certifying tax compliance
- Supply contracts