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Content ID: PR_WCS01_UCM01057360

Export Factoring

Invoice collection management service designed for exporting companies, with the possibility of receiving in advance the amounts billed and hedging the risk of credit.

Banco BPI | Trade Finance Solutions | Export Factoring

Banco BPI | Trade Finance Solutions | Export Factoring

Characteristics

BPI, through FCI, the largest international factoring network, operating in more than 74 countries, ensures a local presence close to the foreign clients of your company.
Short-term financial solution to support treasury and collections management, through which the company transfers to BPI short-term (up to 1 year) receivables from foreign Clients (the debtors), resulting from the sale of products or the provision of services. 

Factoring de Exportação_EN 

  1. The exporting company bills its Client (the foreign importer) for the supply of goods or services;
  2. The exporting company assigns the invoices to BPI;
  3. At the company's request, BPI advances the payment on the invoices assigned;
  4. On the due date, the foreign importer settles the bill for goods or services to the factoring network of which BPI is a member.
  5. The factoring network pays to BPI the amount received from the importer.

Advantages

  • Reduction of administrative costs related to the invoice collection process;
  • Reduction of average collection periods, as management of the process is entrusted to a specialized team;
  • The collection contacts are transferred to BPI, which helps prevent a possible deterioration of the commercial relationship between the company and its Clients;
  • Possibility to receive advance payment for the invoices assigned to BPI, subject to prior approval of the Factoring credit ceiling, which may cover all the Clients of the company, or just some of them;
  • Improvement of the company's economic and financial ratios, since in Factoring without recourse the invoices whose payment was advanced by BPI are removed from the balance sheet (trade receivables), in which case BPI covers, among others, the risk of customer insolvency;
  • Exemption from stamp duty on the use of credit related to the advance payment of invoices under Factoring without recourse;
  • Prior analysis by BPI of actual and potential clients, as well as periodic monitoring of the company's customer portfolio, thus mitigating possible risks;
  • Hedging against the risk of insolvency of the Company's Clients (in the case of Factoring without recourse).

Beneficiaries

Companies, Individual Entrepreneurs and Self-Employed Persons.

Term

Up to one year (between the invoice issue date and its due date).

Credit limit

Applicable only in the case of advance payment of the amounts billed and/or hedging of client risk. A ceiling is set for the company, and/or sub-ceilings are established for each of the Clients covered by the contract.

Types of Solution

Factoring with recourse
The transaction's risk is assumed by the company (the subscriber), i.e., BPI does not assume the risk of insolvency of the company's Clients (the debtors). BPI has the right to recover the advance payments made to the subscriber in case if fails to collect them from its Clients.

Factoring without recourse
BPI assumes part or all of the debtor's insolvency risk. In the event of non-payment by the debtor, BPI assumes payment of the invoices to the subscriber, providing that all contractual requirements are met.

One-off Factoring
Factoring on a case-by-case basis concerning the transfer of one or more claims (invoices) of one or more Clients (debtors). It may assume any of the types referred above.


For more information, please go to any BPI Branch or Corporate Centre or contact us.

Observations

This information is provided for advertising purposes and does not constitute a contractual offer; you must read the pre-contractual and contractual information required by law.

Contracting subject to prior approval by the entities involved and subject to the conditions defined according to the risk profile of each operation.

Banco BPI, S.A., Rua Tenente Valadim, 284, Porto, Tied Insurance Intermediary no. 207232431 (registered with the Insurance and Pension Funds Supervision Authority on 31-10-2017 - more details on the registration available at www.asf.com.pt); authorised to carry on insurance business in the Life and Non-Life Branches with the insurers BPI Vida e Pensões - Companhia de Seguros Vida, S.A., Companhia de Seguros Allianz Portugal, S.A. and COSEC - Companhia de Seguro de Créditos, S.A. Banco BPI, S.A. is not authorised to receive premiums or enter into contracts on behalf of COSEC, Allianz or BPI Vida e Pensões and, as an insurance intermediary, assumes no responsibility for the coverage of risks inherent in the insurance contract.