In a nutshell, factoring is a way for businesses to address short-term cash flow issues by assigning their outstanding invoices or other receivables to a third party (financial institution) in exchange for financing.
Factoring can be done in various ways, with the most common distinction being either with recourse (the risk of default remains with the borrower) or without recourse (the risk of default is undertaken by the lender).
In addition to financing, services typically offered within a factoring relationship include receivables management, collection of receivables and under certain conditions credit risk coverage of receivables.
Considering our approach to credit approval is heavily based on your receivables, it is key for us to assess the quality of the receivables themselves. We will undertake our own credit assessment for each prospective debtor in order to ensure that we have an expectation of being repaid before providing financing.
We have internal credit assessment tools that take into account the debtor’s financial strength, the overall market conditions and business sector dynamics amongst other factors.
Flexfin’s services are designed to help your company by offering you financing and other related services. FlexFin does not alter or affect the commercial relationship between you and your client in any other way.
The terms of your existing commercial agreements continue to apply and are not modified in any way. You only need to inform your clients through the assignment process that from now on any payments will be made to Flexfin’s bank account.
In case you have chosen to receive financing against any receivable, Flexfin will repay you the residual upon payment of that receivable by your client/the debtor (after deducting any fees, charges or past dues), otherwise the entire payment (excluding any fees, charges or past dues) will be credited to your account.
We will provide you with the relevant template of the assignment letter that you need to send to your customers (approved by Flexfin), notifying them that you have adopted our services, and that within that context any payments in relation to your products or services going forward should be made to Flexfin.
Flexfin will also send a similar notification of assignment to your customers to inform them that payment for those receivables can only be made to Flexfin.
Typically, your customers should return the assignment letter duly signed and stamped. Most large purchasers are familiar with factoring so in most cases no objections willbe raised. The assignment process is often smoother if the intention is communicated to the buyer in advance of sending the assignment letter.
Typically, the total charges that you will incur will include an interest charge related to any financed invoices and commission on the total value of the invoices.
The interest for invoices that are available for financing is fixed for the whole credit period and is calculated on the financed amount of the invoice, on a 360 day year basisand is payable on the day that the invoice is due. The commission relates to Flexfin’s administration cost and depends on the specific services being offered.
During the term of our contract you may incur expense such as notice expenses, transfer charges, cheque bounce charges or any other third party charges that our company may incur as a result of our business with you.
An indication of the cost of our services can be found on our website’s home page via our indicative cost calculator.
Flexfin group includes Flexfin SA that serves mainly clients in Greece and Flexfin Ltd that serves clients in Cyprus.
Flexfin SA is the only independent factoring company in Greece, licensed and regulated by the Bank of Greece (Central Bank) under law 1905/1990 and Governor’s Act 2622/21.12.2009
Our aim is to offer a new way for companies to manage their receivables. We allow our clients to manage their own accounts online, we are fully transparent on costs, and provide the tools to be able to take actions quickly and easily from the comfort of your place of business and according to your needs. We approach our client acquisition with flexibility driven predominantly by the quality of your own customers. We allow our clients to choose when and what they would like to finance, and we do not require minimum assigned volumes.
Our goal is to offer an absolutely fresh customer experience. We do trade finance, but we do it in a new way.