Factoring is a specialised receivables finance solution that enables businesses trading on open account terms to improve liquidity, outsource receivables administration and mitigate credit risk.
FIMBank provides factoring as a tailored and integrated service offering, supporting clients in both domestic and cross-border trade.
Read more: Introduction to Factoring
Through the assignment of receivables to FIMBank, clients may benefit from a combination of the following services:
- Invoice and sales ledger administration
- Professional debt collection
- Credit risk protection, up to 100%
- Financing of up to 90% of the invoice value, subject to eligibility
This structure allows clients to convert receivables into immediate working capital while maintaining operational focus and financial certainty.
Factoring is available to companies that:
- Trade on open account terms
- Offer credit terms of up to 180 days
- Maintain a stable and diversified portfolio of corporate buyers
- Generate receivables arising from fully performed and legally enforceable contracts
The product is suitable for both small and medium-sized enterprises and established corporates.
Key Advantages
- Enhanced cash flow and improved working capital management
- Protection against non-payment, up to 100%
- Professional collection services in Malta and in over 80 jurisdictions
- Ongoing credit assessment and monitoring of buyers
Factoring enables receivables to be managed efficiently, reducing financial and operational risk.
Appropriate Use Cases
Factoring is particularly suitable where:
- Sales are conducted on open account terms
- There is an ongoing trading relationship with buyers
- Receivables are clear, undisputed and enforceable
- The seller has fully and properly performed contractual obligations
- No counter-trade arrangements are involved
- The receivables portfolio is diversified across multiple buyers
FIMBank offers a comprehensive suite of factoring solutions structured to meet differing commercial and trade requirements:
Each product is designed to align with the client’s trade flows, risk profile and financing needs.
Factoring facilities are priced according to the structure and scope of services provided and may include:
- A set-up fee for the establishment of the facility
- A service fee applied to the invoice value for non-financing services
- A financing charge, calculated on a daily funds-in-use basis and dependent on currency and prevailing interest rates
Pricing may also be structured as an all-inclusive charge, subject to agreement.
Factoring is an established global trade finance instrument, with:
- Over 3,000 factoring companies operating worldwide
- Presence in more than 80 countries
- Annual global turnover approaching EUR 2.35 trillion
- Cross-border factoring volumes exceeding EUR 490 billion
FIMBank is a member of Factors Chain International (FCI), enabling access to an extensive international network and recognised industry standards.
Learn more: International Factoring Network
| FIMBank's Factoring Strategy |
FIMBank considers factoring to be a strategic and complementary trade finance solution, particularly suited to exporters and small and medium-sized enterprises seeking efficient alternatives to traditional trade instruments, including letters of credit.
The Bank has supported the development of factoring markets through strategic partnerships and joint ventures, including India Factoring, Egypt Factors, and BRASILFactors, contributing to the facilitation of trade between emerging and developed economies.
To discuss how a factoring facility may support your business, please contact:
Trade & Commodity Finance – Malta
FIMBank p.l.c.
Tel: +356 2132 2100
Email: Please contact us to arrange a meeting
