The International Export Factoring is an instrument that helps the Portuguese Companies pursue an export strategy to the major international markets.
- Collection Service: the collection of the credits assigned is made by a correspondent factoring company located in the country of the Debtor/Buyer, taking advantage of its knowledge on the country in question;
- This eliminates the language barriers in the collection process, cuts down on administrative costs and frees up the exporter's human and financial resources without damaging the entire credit settlement process;
- Access to information that is up-to-date and accurate: at the website millenniumbcp.pt/Empresas, the client can see the factoring contract's complete information in real time.
- Possibility of accessing a form of funding your export business.
02.002.5655 - 2012/04/24
In International Export Factoring, Companies assign to Millennium bcp their short term (invoices) credits over foreign clients (Debtors) due to credit sales of goods, aiming to:
- optimize the collection of amounts receivable from the foreign clients/debtors;
- ensure protection against default on the payment date of the foreign clients/debtors, if the risk hedging policy has been contracted.
- access a supplementary funding source since it gives the companies the possibility of receiving from Millennium bcp an advance on the credits assigned;
The intervening parties in an international factoring operation are:
- Assignor (Exporter or Seller): Portuguese company that supplies the merchandise;
- Debtor (Importer or Buyer): Foreign customer of the Exporter, liable for the payment of the invoices for the merchandise;
- Millennium bcp - Export Factor (EF): Entity to whom the Portuguese Exporter assigns its credits (invoices) under the terms of the factoring contract;
- Import Factor (IF): Entity located in the Debtor's country to collect the credits assigned (invoices), and that may assure the risk hedging in case of default by the Debtor. Millennium bcp is responsible for the relationship with this entity.
International Export Factoring includes:
- Debtor Analysis: the foreign Debtors/Buyers are subject to risk assessment by the Import Factor chosen by Millennium bcp. The Import Factor will set risk hedging limits for each of them. This analysis is made pursuant to a request from Millennium bcp prior to the Bank's decision to execute the operation.
- Risk hedging: when contracted it ensures that the risk of default by the foreign Debtors/Buyers is covered. In case of dispute, that payment may not be executed.
- Management and Collection: Millennium bcp manages and collects the credits assigned to it using, for that purpose, the services of the Import Factor located in the country of the Debtor/Buyer;
- Funding by cash advance: the Assignor/Seller will be able to receive in advance a portion of the credits assigned, subject to credit approval by the Bank;
Millennium BCP takes advantage of the collaboration between Banks and Factoring Companies in the foreign debtors' countries to provide an efficient collection service and the possibility of hedging the default risk, having, for that purpose, a broad network of international deals.
Sales made by letters of credit or payments made against documents for any type of spot sale are excluded from these contracts.
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
Millennium bcp's corporate website provides functions that give you access to information on Contracts, Collections and the Credit Portfolio, and allow you to request advances, add Debtors and send Credits Assignment Files.
You'll be able to access the entire information related to your factoring agreement in a simple, intuitive, efficient and accurate manner.
Contact your Client Manager or go to a Millennium bcp Branch and find the best solution for your Company.