Types of factoring

Solutions for advance payment of receivables

With the advance payment of receivables, we help companies that work with other businesses or with the Public Administration. We have the expertise to optimise relations between a company and its customers, with solutions tailored to every business need.

In the case of recourse factoring, you transfer your trade receivables to us while you remain responsible for the risk of customer insolvency. We handle the collection of the transferred receivables, paying you the amount in advance.

You can request factoring regardless of the size of your company, whether you are a supplier for companies in the private sector or if you have relations with the Public Administration.
Thanks to factoring with recourse you can:

  • Obtain an advance on the transferred receivables and immediately have the liquidity necessary to finance the working capital;
  • Improve the regularity and speed of the cash flow;
  • Optimise the flow of payments and short-term collections;
  • Concentrate on the commercial and productive aspects of the business, increasing competitiveness in the relevant market.

Guaranteed factoring combines factoring with recourse with the guarantee of the Central Guarantee Fund, which covers up to 60% of the amount of the loan (in accordance with the Liquidity Decree, the coverage rises to 90% until 31/12/2020).

The Guarantee Fund (Law 662/96) is a public guarantee established by the Ministry of Economic Development (MISE), the purpose of which is to facilitate access to credit for businesses, replacing or accompanying guarantees of another nature and reducing the risk of the financing party on the guaranteed amount.

The company transfers its trade receivables to the bank, while remaining responsible for the risk of customer insolvency. The Bank, in addition to handling the collection of the trade receivables and possibly paying the amount in advance, takes care of the formalities necessary to access the guarantee of the Fund, providing the company with all the support it needs.

The product is aimed at small and medium-sized enterprises – as defined by European legislation -, including national artisan businesses that are economically healthy and belong to any sector, with the exception of those deemed sensitive by the European Union that want to outsource the management of their trade receivables to a specialised operator, and who wish to possibly finance their working capital, for example during expansion and during periods of growth in turnover.

The possibility of guaranteeing financing with the intervention of the Central Guarantee Fund allows a smaller or newly established company to obtain all the financial support it needs, being able to present to the Bank also customers who normally do not accept the transfer of receivables or do not provide feedback on quality of the service provided.

Thanks to the factoring guaranteed by the Central Guarantee Fund you can:

  • Obtain an advance on the transferred receivables and immediately have the liquidity necessary to finance the working capital;
  • Improve the regularity and speed of the cash flow;
  • Optimise the flow of payments and short-term collections;
  • Concentrate on the commercial and productive aspects of the business, increasing competitiveness in your market.

Furthermore, thanks to the support of the Central Fund guarantee, the Bank’s credit risk is reduced: for this reason, the company is given a reduction in the financial cost of the transaction.

Non recourse factoring combines credit management, collection and financing with the protection from the risk of insolvency of your customers. We assume the risk of non-payment of the assigned debtor within a contractually defined amount.

You can request the product regardless of the size of your company, whether you are a supplier for companies in the private sector or if you have relations with the Public Administration. The product is aimed at companies of all sizes, suppliers of other companies in the private sector or of the Public Administration, who wish to protect themselves from the risk of insolvency of their customers.

With factoring without recourse you can:

  • Immediately collect the transferred receivable, anticipating normal recovery times and promoting cash flows;
  • Enter new markets, protecting yourself from the risk of insolvency of your customers;
  • Optimise the management of your trade receivables and reduce their administrative costs by outsourcing the management process to the factor;
  • Improve the risk profile of working capital;
  • Receive an assessment of the risk profile and reliability of your commercial portfolio.

Outright purchase transactions are a particularly advantageous solution for medium/large-sized enterprises, listed on the stock exchange or belonging to multinational groups, whose financial statements are subject to the accounting principles of the IAS or US FAS Standard.

With the Outright purchase formula you can optimise the management of your company’s treasury and improve the budgetary indicators.

In the case of this type of transaction, any possibility of recourse on the transferred receivables is excluded, against the insolvency or non-payment of the assigned debtor. With this formula we take on the credit risk and risk of late payment and, moreover, you have the possibility of derecognition from the financial statements of the transferred financial assets.

In this case, you can obtain financing through the advance of receivables that will arise from contracts already entered into with your customers.
Against the transfer of future receivables, the Bank pays an advance on the contract, in a percentage normally between 10% and 20% of the taxable value of the same.

The advance on future receivables is recovered through the withholding of part of the advances of the fees, requested from time to time by the company on the receivables arising and transferred with or without recourse to the Bank.

The advance payment of future receivables is mainly aimed at companies that work on contract or have entered into contracts that foresee an important financial commitment in the start-up phase.
The advance on future receivables allows you to:

  • Obtain liquidity even without issuing of an invoice by your customer;
  • Support contracts for the supply of goods or services that require a financial commitment in the start-up phase;
  • Optimise the flow of payments.

With the maturity option, an ancillary service to factoring, we guarantee payment of the transferred receivable at maturity, offering you the opportunity to obtain a further payment extension of the original receivable. The maturity relationship arises from prior development of the assigned debtor who has a diverse portfolio of suppliers with whom it maintains ongoing relationships. The so-called indirect development arises from the desire to optimise relations with suppliers, offering a financial solution to their liquidity needs.

The maturity option implies a contractual agreement between your company, Banca Ifis and the assigned debtor, to regulate the payment on expiry and the operational and financial terms of any extension granted to the debtor.

Thanks to this service you get:

  • The certainty of receiving, upon the natural expiry of the receivable, payment of 100% of the amount;
  • The guarantee of punctuality and continuity of payments;
  • Ability to dispose of the value of your receivables upon expiry.

Advertising message for promotional purposes. For the contractual conditions of Factoring and Deferral of Payment of Trade Receivables, please refer to the information sheet available at our branches and in the Transparency section of the website www.bancaifis.it.

Customer service

We are present throughout Italy: we can arrange to visit you at your premises and describe our factoring and financing solutions.

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