Factoring

Factoring is a tailor made package of services designed to secure your debt collection and improve your cash flow offering you a competitive edge in your markets (domestic and abroad).

Companies trading on open account terms can assign their receivables to FIMBank and benefit from:

1. Invoice / sales ledgering
2. Debt collection
3. Risk protection
4. Financing

All companies with stable portfolio offering credit terms up to 180 days to corporate buyers. The receivables must result from completely fulfilled contracts by the seller. 

• Professional collection services in Malta and in more than 70 countries
• Protection against bad debts (up to 100%)
• Financing (up to 90% of invoice value available immediately)
• Buyer's credit assessment (on regular basis)

• Sales on open account terms
• Continuous business relationship
• Clear sales title / enforceable receivables
• Clean / clear performance of the seller
• No counter trade
• Portfolio spread over a number of buyers

The pricing for factoring has three major components:

1. Fee to set up the factoring package
2. Charge applied to the invoice value for the services rendered other than financing
3. Discounting or interest levied for the financing (applicable to the funds-in-use on a daily balance). This will depend on the interest rates for different currencies.
 The price may also be conceived as an 'all-in' charge.

Please request a meeting by contacting us at:

Mediterranean Factoring Department
FIMBank p.l.c.

Tel: +356 21322100
Fax: +356 23280109
E-mail

There are more than 3,000 factoring companies registered in more than 70 countries worldwide. The turnover of businesses using factoring services exceeded EUR 1,648 billion, out of which more than EUR 246 billion represents cross border business. There are several international and national factoring associations promoting this service and its variation in the different national markets and internationally in order to assure a global standard vision of this industry. FIMBank is member of the two international factoring associations, Factors Chain International FCI and the International Factors Group IFG, thus allowing it to benefit from a world wide pool of expertise and the largest possible network of service providers.

FIMBank sees Factoring as a highly specialized financing tool that is complementary to its more traditional trade service products and vital to the growth and development of the small and medium sized businesses. FIMBank sees the role of Factoring as an important tool for the growth of international trade, especially in developing countries exporting to the more developed countries. FIMBank is committed to introducing Factoring services in various countries, especially in emerging markets, where it is either nascent or not available. Factoring provides exporters a risk mitigation alternative to letters of credit and with it the opportunity to grow their business. In 2004 FIMBank became a partner in a Joint Venture in India, Global Trade Finance Pvt Limited GTF along with the EximBank of India, International Finance Corporation (part of World Bank) and Bank of Maharashtra. In 2008 FIMBank sold its equity stake to the State Bank of India GTF, India's first integrated factoring and forfaiting company and created the 'blueprint' for FIMBank's factoring strategy. FIMBank has a long term plan to promote similar joint ventures in other emerging markets, with the aim of building a global network. In 2007 together with the International Finance Corporation IFC part of the World Bank Group and Commercial International Bank CIB FIMBank set up Egypt Factors. In 2008 it established MENAfactors in Dubai, as a 100% subsidiary, servicing the Middle East and Northern Africa region. MENAfactors has meanwhile expanded its activities into Lebanon and other regional expansions are planned. Apart from the MENAFactors in Dubai, Egypt Factors in Egypt, and Levant Factors in Lebanon, FIMBank's international network today includes FactorRus in Russia and India Factoring in India (both established in 2010) and BRASILFactors in Brazil (established in 2011). The Bank has a strategic partnership with RomFactor in Romania.

Whenever it  participates in a Factoring joint venture FIMBank enters as the technical partner providing its factoring, back-office and technology expertise. Our credentials in providing support to factoring joint-ventures are tried and tested. The international awards received, together with the achievement of ISO certification for our factoring back-office operations, are an important endorsement of the quality of these services as well as recognition of the professionalism of our in-house specialists. For further information click here.