Factoring is the conclusion of an agreement between the factor and the supplier, by which:

(a) the supplier can assign his/her claims against customers (debtors)

(b) the factor should provide at least two of the following services:

• Advance payments (financing) for the purchase of trade receivables.
• Accounting management of the debtors’ accounts.
• Collection of trade receivables.
• Cover of credit risk.

Usually the financing is carried out on the next business day following notification of receivables.

1. The supplier signs a Factoring agreement with NBG Factors and notifies the debtors (customers) in writing of the assignment of the debtor receivables to NBG Factors

2. Following delivery of goods or the provision of services, the supplier notifies the factor of his/her assigned debtor (customer) receivables

3. The factor provides financing to the supplier on the basis of the value of the receivables assigned.

4. The debtor pays to the factor the value of the receivables that the latter has undertaken to manage and collect.

The overall cost of Factoring involves two cost components:

• The handling fee, which is charged on the value of assigned receivables and includes the administration, collection and insurance cost of the services provided.
• The discount fee, which is calculated on the basis of the daily balance of the current account, and corresponds to the lending rate applying to the outstanding discounted receivables at any given time.

With respect to Domestic Factoring that pertains to business receivables created by commercial transactions between companies headquartered in Greece, NBG Factors undertakes to:

• Instantly pay in advance part of the receivables of the business against their debtors.
• Manage the assigned receivables, with the purpose to better monitor, correctly update, as well as to minimize the administrative costs for the business.
• Collect the receivables, upon relevant written notification to the debtors by the supplier (notice of assignment), with consistency, as well as with discrete application of the relevant credit terms and timely notification regarding any discrepancies.
• Assess the debtors’ credit rating, thus minimizing doubtful debt risk.

You can enjoy a range of benefits through Export Factoring, such as:

• Advance payment and management of receivables (similar to Domestic Factoring).
• Collection of assigned receivables by foreign correspondent agents we partner with.
• 100% coverage of customer insolvency risk.
• Constant customer evaluation and activity monitoring.
• Elimination of time-consuming language, geographic and legal issues that arise during the negotiations with debtors.