Export Factoring: CoEFI
- The Company was founded under an international spirit that is immediately reflected on the name “Compagnia Europea Factoring Industriale” and, since the beginning of its activity, it works towards adhering to the first international association of factoring companies, International Factors Group (IFG).
The basic services provided by International Factoring (IMPORT/EXPORT) correspond, for the most part, to those offered in Domestic Factoring:
- Management (included collection and funds transfer);
- Advance payment of commercial credits.
The main dissimilarity in International Factoring is represented by the fact that supplier and buyer reside in two different countries, resulting in a more complicated commercial transactions especially for those companies which do not have a consolidated experience in international markets and/or are lacking an adequate corporate structure to manage and further develop the business.
It is aimed at medium/small size companies exporting goods/services or intending to offer their suppliers different forms of guarantee (Import).
CoEFI performs its activity within the chain of correspondents belonging to IFG (International Factors Group) and present in over 80 countries throughout the world.
The data transmission process is regulated by an integrated system that allows a real time punctual information flow.
The operation in this case is the traditional one, with the assignment notification to the debtor who will, in turn, directly pay the correspondent.
Usually, the assignments are continuous and consists of the totality of the credits vaunted towards clients of one or more foreign countries, who accept the assignment of credits and who have been agreed upon with CoEFI.
In this case, if previously arranged, an advance payment is contemplated (usually 80%).
Through the correspondents abroad, CoEFI guarantees the credits from the risk of insolvency up to 100%.
There is also the possibility of operating in terms of guarantee only, without the notification to the debtor, and with the credits management performed by the assignor. In this case, the correspondents are not involved and the operations take place outside of the IFG environment. Furthermore, CoeFI will grant a risk coverage based on the country applicable percentage rate, and the advance payment of the export credits will not be contemplated.
- Precautionary evaluation of the clients both active and potential;
- Constant monitoring of the clients/debtors positions;
- Guarantee from insolvency risk;
- Legal assistance abroad
- Conversion of credit management and collection expenses from fixed to variable costs
- Separation of credit collection from commercial transaction
- Increase in the collection’s legal advantage
- Financing of turnover development and financial flows settlement without resorting to bank credit lines.
Just like for the Export as well as for the Import, CoEFI operates through a correspondence agreement of 2 Factor business within the IFG association, on the basis of a mutual necessity of foreign suppliers to receive a without recourse coverage for the credit risks towards Italian clients/debtors.
CoEFI can also offer direct import agreements, providing the foreign supplier without recourse plafonds, granted exclusively upon a factoring contract subscription and with the unconditional acceptance of the debt on behalf of the importer (debtor).
In international trade, it is becoming more and more frequent, in alternative to other forms of guarantee like the letter of credit, to request a credit risk coverage through a without recourse factoring operation.
- Purchasing financing and regulation of the unprofitable financial flows without affecting the ordinary credit sources;
- Increased contractual power;
- Improved management of passive cycle (supply debts) and active cycle (assignment of commercial credits).
FLYfactoring … a solution to broaden the horizons of your company.