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Confirming On Time

Confirming On Time  

5.705% TAE

Paying is easy and you get paid faster.

Advantages

Confirming On-Time, integrated in the Cash On-Time Solution of Millennium bcp (factoring and confirming) consists of a management service for payments of Companies that are Clients of Millennium bcp to their suppliers in two different ways, depending on the type of service and collaterals given to the Client:

Confirming On-Time - Guarantee
This service guarantees the firm and irrevocable payment of the Payment Orders issued on behalf of the Client
Confirming On-Time - Payments
The process for managing payments to suppliers is delegated to Millennium bcp, which acts on behalf of the Client

Confirming On-Time enables access to an associated Credit Line that gives the Companies treasury greater flexibility.

Advantages for the Subscriber (Large Debtor)

  • Confirming On-Time Guarantee provides an improved ability to negotiate purchasing conditions by giving the Suppliers a solution to:
    • Ensure compliance with the payment of the invoices for which Millennium bcp receives a payment order;
    • Offer an option of anticipating revenues with guaranteed liquidity.

  • Both types of Confirming On-Time provide the Company with:
    • Automated Procedures for paying Suppliers by creating files containing information on the Payment Notices;
    • Reduction of administrative costs - since you entrust the Bank with the task of managing the payments to a large number of suppliers;
    • Online management through the Corporate website of Millennium bcp of your Confirming On Time Millennium bcp contracts and suppliers portfolio with all information updated in real time;
    • Better value in the relation established between the Company and its Suppliers by providing them with a professional and custom service.

Advantages for the Suppliers

  • Confirming On-Time Guarantee provides the following clear advantages to those being paid:
    • Firm and irrevocable payment of invoices with settlement guaranteed by Millennium bcp;
    • Ensured liquidity to face eventual treasury needs, even if they are not customers of the Bank.
  • Confirming On-Time Payments enables an advance on revenues, even for suppliers that are not customers of the Bank, depending on a case-by-case analysis.

  • Both types of Confirming On-Time provide the Suppliers with:
    • Simplification of the administrative work related with the collection process, increasing effectiveness;
    • An improved treasury management and control through the early and systematic reception of the communication describing the invoices to pay;
    • Access to the Confirming On-Time Credit Line - a solution to ensure the treasury balance of the Company whenever it wishes to postpone the payment date on invoices from its suppliers;
    • Online Management of receivables in the corporate website, even for non-customers, with the possibility of:

      - consulting Payment Notices containing all information updated in real time;
      - requesting the Funds Advance in an immediate and intuitive manner (when applicable);
      - simulating the charges associated with each advance.

Costs

Confirming On-Time and Confirming On-Time Credit Line operations are subject to the pricing in effect, available for consultation here or at any Millennium bcp Branch.

5.705% TAE (annual effective rate) computed based on a 3.750% TAN (nominal annual rate) - Euribor 180 days (calculated as the average of the daily offer rates of the month prior to each interest-bearing period, which in this instance was July 2020, -0.346%, being negative it is rounded upwards to 0.000%) plus 3.750% spread for a Confirming On-Time Credit Line of 50,000 EUR, for a 90-day period, and including the Credit Line Setup Fee.

The TAE (annual effective rate) was computed according to the Decree-Law nr. 220/94, of 23 August.

Features

When using Confirming On-Time, the Company delegates on Millennium bcp a large number of the tasks related with its payments and the Bank becomes the entity that centralizes the payments of the Client that subscribed the service.

In addition, suppliers will be given the possibility of, up to a certain limit, receiving the amounts payable in advance in a simple manner, even if they are not customers of Millennium bcp.

Confirming On-Time also provides you with access to a Credit Line to get liquidity and keep the treasury balanced if you need to delay the payment of invoices.

Adapting to the Client's needs, there are two types with different scopes and guarantees:

 

Confirming On-Time
Payments
Confirming On-Time
Guarantee
Services Provided Pay easily / Get paid faster Guaranteed Payments and Receivables
Issuing Payment Notices with Guarantee  
Issuing Payment Notices without Guarantee  
Funds advanced to Suppliers    
• Available for non-client Suppliers
• Credit into the account with other banks
Free Inclusion of Suppliers
Option for advance costs to be borne by the buyer
Confirming On-Time Credit Line
Website    

Buyer:

   
• Online issue of Payment Orders
• File Upload (Excel): List of Payment Orders

Suppliers (even if not customers of Millennium bcp)

   
• Online viewing of received Payment Orders
• Simulation of the advance costs
• Request Funds advance *
* (subject to analysis)

 

The most important player in this service is the Buyer, since it will be the one to define and select the Suppliers to include in the Confirming On-Time Millennium bcp operation.

Periodically, by means of the files sent or made online containing payment instructions, the Client communicates to the Bank which documents need to be paid.

With this communication, the Bank issues a document denominated Payment Notice that is sent to the Supplier as follows:

  • Confirming On-Time - Guarantee: Guaranteed Payment Notice
  • Confirming On-Time - Payments: Simple Payment Notice (settlement subject to the Company having funds available on the payment date)

The Payment Notice contains information on the payments to be made and may be complemented with the Funds Advance Proposal as follows:

  • Confirming On-Time - Guarantee: Funds Advance Proposal with guaranteed liquidity in advance
  • Confirming On-Time - Payments: Funds Advance Proposal with liquidity in advance subject to case-by-case analysis

The effective granting of the credit operations herein presented depends on the prior appraisal and decision on the credit risk and on the eventual provision of valid collaterals required by the Bank.

How it works

In both cases, Millennium bcp offers you through the corporate website the Confirming ON-Time Service, providing the Buyer and its Suppliers with a wide set of tools, in a simple, comfortable and safe manner.

The Buyer and the Supplier are given the possibility of making the entire management of the information and of requests related with the Confirming ON-Time Millennium bcp. Hence:

  • The Buyer can view the conditions of the protocol, create files online or send files on the Payment Notices, use and pay the Confirming On-Time Credit Line, consult the status of the files and maintenance of the Supplier's database (alteration, inclusion, exclusion).
  • The Suppliers have the possibility of consulting the Payment Notices issued on their behalf, request the advance of the amounts described in the Payment Notices, consult the Advances and other documents.

If the Supplier is not a Client of Millennium bcp, it must register at the Corporate website here.

Other issues

Contact your Client Manager or go to a Millennium BCP Branch and find the best solution for your Company.

FAQ

When and for how much may the Supplier anticipate the payment of the invoices?

Immediately after receiving the Payment Notice (PN) and up to 10 working days prior to the Notice's payment date, the supplier may get in advance up to 100% of the total amount of the Notice, according to the specific type of product.

Confirming On-Time - Guarantee: Guaranteed advance of 100% of the Payment Notice amount

Confirming On-Time - Payments: The Payment Notice advance is subject to a case-by-case analysis and provided that such request complies with the global advance limit available.

The value corresponding to the discount on assignment without recourse (advance and processing) is deducted to the amount of the PN when the advance is made.

The amount of the Payment Notice may be totally or partially advanced. The minimum amount to be advanced must exceed 500€.
To be able to receive funds in advance, must the Supplier sign a contract?

No. When the Client requests the advance of funds through the Banking Operations area, the client will only have to accept the general and specific conditions when it requests the advance of funds/assignment of credits to the Bank, which suffices.

As an alternative, the advance of funds is contracted when the supplier makes each advance request by returning the Advance Proposal, duly signed, and this document constitutes the contract itself and therein are mentioned all the general and specific conditions of the funds' advance / credits' assignment.

Are there any limitations regarding the ability to request the advance of funds?

Regarding Confirming On-Time - Guarantee there are no limitations, i.e., all Funds Advance Proposals are guaranteed.

Regarding Confirming On-Time - Payments, the funds advance to the supplier is subject to case-by-case analysis and provided that such request complies with the global advance limit available.

The global advances limit of the Confirming On-Time - Payments contract, approved for the buyer, serves to limit the risk of Millennium bcp in case the Large Debtor does not pay the Payment Notices on the dates indicated by it (account with insufficient funds).

NIn this type of product, if the funds are approved and advanced, this operation constitutes a credit assignment without recourse on the buyer.

What is the functioning, in terms of Stamp Tax, of the advances of funds by means of credits assigned to the Bank?

With Confirming On-Time, the charges deriving from the advance of funds through credits assignment are denominated  "discount on assignment of credits without recourse" and may derive from the advance and its processing.
The tax framework for this type of operations in terms of stamp tax applies as follows:

  • When the charges deriving from the credits assignment/advances are paid by the Large Debtor/Buyer:
    - Stamp tax on the utilization of the credit: Not applicable;
    - Stamp Tax on Discount (charges due to advance) (art. 17.3.1 of the Stamp Tax General Table) – Subject to 4%;
    - Stamp Tax on Discount (charges due to processing) (art. 17.3.4 of the Stamp Tax General Table) – Subject to 4%.

  •  When the charges deriving from the assignment of credits/funds advance are paid by the Supplier:
    - Stamp tax on the utilization of the credit: Not applicable;
    - Stamp Tax on Discount (charges due to advance) (art. 17.3.1 of the Stamp Tax General Table) – Not applicable;
    - Stamp Tax on Discount (charges due to processing) (art. 17.3.4 of the Stamp Tax General Table) – Not applicable.

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