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Fibank offers a full range of factoring services

They are tailored to the needs of companies in Bulgaria

Sep 10, 2024 14:28 126

Fibank (First Investment Bank) offers a full range of factoring services tailored to the needs of companies in Bulgaria : factoring with right of recourse, factoring with insurance, factoring with guaranteed payment.

Factoring is a financial tool with which companies in our country can quickly manage their short-term receivables. It is a transaction for the transfer of receivables under commercial invoices arising from the supply of goods and the provision of services on deferred payment terms in both the domestic and international markets.

The main participants in factoring are: factoring company (factor) and company (supplier). The factor buys the trade receivables from the supplier, providing him with the necessary working capital against payment of a certain fee for providing this type of service.

FIB factoring is the best choice for companies that are looking for a way to offer more flexible terms than other competitors by paying their supplies faster and negotiating a longer deferred payment.

Most often, factoring is used by companies that:

  • need working capital but have no collateral;

  • enter new markets and do not know their future partners;

  • want to release themselves from debt collection obligations;

  • are not sure of the solvency of their partners.

The most frequent clients of factoring services are traders and manufacturers from: the automotive industry, the food industry, furniture production, mechanical engineering, the chemical industry, transport and logistics services.

The factoring offered by First Investment Bank is a package of one or more of the following financial services that the bank provides to clients:

• Supplier working finance based on deferred trade receivables transferred;

• Administration and collection of transferred receivables on commercial invoices;

• Undertaking the credit risk in case of non-payment and insolvency of the buyer.

Using Fibank's factoring services, companies receive a number of advantages, including:

  • Increased financing - financing grows in parallel with increasing sales;

  • Investments and development - source of working capital for financing company development. The funds are provided on your current account and can be used for any turnover needs;

  • Security - the collection of trade receivables is carried out by First Investment Bank. In this way, the loss from bad debts is minimized;

  • Speed - faster approval process and greater flexibility than classic revolving financing;

  • Efficiency - improving trade receivables management;

  • Research of domestic and foreign buyers by financial specialists in the field of company analysis and valuation.

You can find additional information about the types and procedure for factoring on FIB website< /a>. You can contact the experts from the “Factoring and leasing“ by e-mail: [email protected] or by phone: 02/817-12-62.