Besides financing, factoring provides the benefit of outsourcing the collection of account receivables to the bank and hence reduces the time allocated to monitor the incoming payments.
“In the current economic context, the companies often face liquidity gaps, as incoming payments do not always meet the deadlines set with the commercial partners. By its defining components - financing, collection, monitoring - factoring is an advantageous solution, providing funding adjusted to companies’ sales volumes“, said Dana Feher, Head of Corporate Marketing and Product Development at Millennium Bank.
Millennium Bank’s factoring solution is destined to companies with annual turnover above €0.5 million. The product is available in lei as well and finances up to 80% of the eligible account receivables.
“Through factoring, the companies are practically «selling» their account receivables to the bank and obtain liquidity needed for carrying on their current activities”, Dana Feher added.
Factoring offers flexibility in using funds, as the bank does not limit their destination. Additionally, once the factoring limit is approved, this product requires only a simple documentation for financing approval to be submitted to the bank.
With the launch of this new product, Millennium Bank extends the corporate product portfolio to all types of operations: current accounts, loans, cards, deposits, foreign exchange, leasing, factoring, trade finance, Internet Banking and Call Center.
An increasing number of banking institutions target small business via specialized factoring departments. Other banks that offer factoring services are ING, BCR, BRD SocGen, UniCredit, Raiffeisen Bank, RBS , BT and Romexterra.
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