Factoring and discounting

Full solution for the management and financing of receivables

Factoring and discounting

Import factoring with/without un-payment risk takeover

No charges

or fees

Possibility to negotiate

longer payment terms with your external partners

Cutting down expenses

with money transfer, as the foreign payment turns into a domestic payment based on the debt assignment

How it works

Preliminary phases:

1. BRD examines the possibility of taking over the risk of non-payment for the importer.

2. The importer negotiates the payment deadline with its foreign supplier and informs the latter about its intentions to carry out the commercial transaction though factoring operations.

3. The Export Factor contacts the Exporter to present the product.

4. The Exporter signs the factoring agreement with the Export Factoring.

5. At the request of the Export Factor, BRD guarantees the non-payment risk cover limit.

Process:

6. The Importer receives the notice on the assignment of the commercial contract by the Exporter to BRD. All the payments related to the assigned invoices will be made only in the account of and to the benefit of BRD.

7. The Importer receives the merchandise or the service corresponding to the invoice issued by the foreign supplier.

8. On the due date, the Importer pays the equivalent value of the invoice in the account and to the benefit of BRD, according to the notice received from the foreign supplier.

9. BRD transfers the collected amounts to the Export Factor.

Who can start the operation?

- The Export Factor – following the Exporter's request, the export factor asks BRD (the Import Factor) to take over the risk of non-payment and/or collect the receivables.
- The Import Factor, BRD – having identified the opportunities of collaboration with the Romanian importing companies, the Import Factor provides the Importer with the import factoring service and, based on the received information, asks the Export Factor to contact the Exporter to present the advantages of this service.

Frequent questions

Why import factoring and not a letter of credit/ bank guarantee letter?

Because:

- the importer does not have to bear any costs;
- the importer no longer makes the foreign payment on the due date, but an internal payment, thus reducing the foreign transfer-related costs;
- the risk of non-payment of the foreign supplier is fully taken over.

Domestic and export factoring with recourse

Flexible financing

according to your needs

Professional management

of your receivables based on specialized IT solutions and periodical reports informing you on the receivables managed through factoring

Building your partners’ loyalty

by granting them longer payment terms.

How it works

How does the product work?

- The Adherent delivers the assets or the services and sends the invoices to the debtor.
- The Adherent assigns the invoices to BRD and sends copies of the fiscal invoices to the bank.
- BRD finances the Adherent with some of the value of the invoices, upon request.
- On the due date, the debtor makes the payment to BRD.
- BRD transfers the difference between the amounts received from the debtor and the financed amount to the Adherent. |
- If the debtor does not pay the invoices in time, BRD starts the collection procedure.

What are the conditions?

- The commercial relation must be based on a commercial contract / firm order, signed and stamped, and contain identification data of the partners, payment terms, delivery conditions, etc.
- Agreed payment terms of less than 180 days
- The commercial contract must not forbid the parties to assign the contract
- The commercial relations with shareholding connections and the contracts that stipulate payments conditioned by other receipts cannot be subject to factoring operations.

Domestic and export factoring without recourse

Flexible funding

depending on your needs

Professional management

of the receivables based on specialized IT solutions and periodic reports

Insurance

for the internal and external debtors’ default risk

How it works

How does domestic and export factoring without recourse provided by BRD work?

- The supplier delivers the goods or supplies the services and sends the invoices to the buyer (debtor).
- The supplier assigns the invoices in favor of BRD.
- BRD funds the supplier for a part of the invoice amount, follows-up the collection of receivables and covers default risks for certain receivables.
- On the due date, the debtor makes the payment in the BRD account and BRD pays the remaining amount (not yet financed) from the invoice to the supplier In case of payment delay.
- BRD starts the collection procedure.

What are the conditions for funding this product?

- The commercial relationship must be carried out pursuant to a commercial contract/final order signed and stamped, which must include the identification data of the partners, payment deadlines, delivery conditions, etc.
- Payment deadlines agreed less than 180 days
- The commercial contract does not have to ban the parties’ right of assigning the contract
- Commercial relationships with shareholding links and agreements requiring payments depending on other money collections cannot be subject to factoring operations.

Frequent questions

How much does it cost?

To set the costs of the operation, information is required regarding the commercial declarations for which factoring operations are requested.
The cost of the operation is influenced by the number of commercial relations, the number of invoices, the quality of the proposed debtors, the turnover to be carried out by factoring and, last but not least, the type of operation.
For every type of tranzation, the Factoring Division can send you a personalized offer of costs.
For a customized offer, contact the Factoring Division at the email address: comercial.factoring@brd.ro, or the client consultant.

Forfaiting and discounting in foreign currency

Create liquidities

improve the cash-flow by collecting the debt claim before it falls due

100% finance

of the debt claim amount

Without regress

on the client

How it works

How does the product work?

If you are the beneficiary of an irrevocable letter of credit in foreign currency payable by the due date or of a promissory note guaranteed by a bank agreed by BRD, we provide you with 100% of the amount of the debt claim (minus the costs related to the forfeiting operation).

What are the conditions?

The bank issuing the letter of credit or the bank guaranteeing the script note is agreed by BRD. In these conditions, the operation is called forfeiting and ii is without regress. Otherwise, it is called discounting and it is a regress operation.

Frequent questions

Can this letter of credit be forfeited?
Yes, if it is an irrevocable letter of credit payable on the due date in foreign currency, and the issuing bank has been agreed by BRD.

When do I get my funding?
After the documents submitted as part of the letter of credit have been checked by the issuing bank and confirmed on the due date.

What costs does it involve?
For a customized offer, contact the Factoring Division at the email address: comercial.factoring@brd.ro, or the client consultant.
For every type of tranzation, the Factoring Division can send you a personalized offer of costs.

Commissions and tariffs