Factoring, also known as accounts receivable financing, is a form of commercial finance whereby a company assigns its account receivables (invoices or other commercial credits) to a factoring company. This allows a company to be independent of account receivable delays, transforming credit over customers into cash while boosting cash-flow.

In a factoring agreement there are three parties involved:

• The seller of the product or service who issues the invoice or other commercial credit;
• The debtor who is the customer of the seller;
• The factoring company;

At Popular Factoring we offer you a wide range of accounts receivable financing, tailor-made solutions to your business based on our 37 years long experience in the sector.

Popular Factoring is recognized as a factoring company with a strong focus on customer service, high operational quality and prompt approach to market.

At Popular de Factoring we accompany you as your business grows, so that your activities are more profitable, sound and secure. We offer you made-to-measure solutions within the sector in which we have the greatest experience, both domestically and internationally.

By place:

• DOMESTIC – Operations in which both client and debtor are Portuguese resident companies;
• EXPORT – Operations in which the client is a Portuguese resident company and the debtor is a non-resident company;
• IMPORT – Operations in which the client is a non-resident company and the debtor is a Portuguese resident company.

Risk Guarantee:

• Recourse factoring – Situation in which Popular Factoring does not take the credit risk on the Debtors. Under this agreement, the client is ultimately responsible for debtor insolvency or bankruptcy;
• Non-recourse factoring - Operation in which Popular Factoring offers credit risk protection over Debtors up to 100% of the approved credit line.

Cash Transfer:

• Collection Management – Popular Factoring acts as the collection department of its client and funds are transferred after debtor’s payment;
• Accounts Receivable Financing – Popular Factoring may advance a percentage of the invoice face value within 24 hours, upon client’s request, within debtor’s classification and limit approved.

Popular Factoring provides all range of factoring products and services, tailor-made to your business needs, with a strong focus on high quality of services provided:

• Credit Risk Analysis of Your Customers – Popular Factoring offers a service of credit risk analysis keeping your company with up-to-date information on your customer’s financial performance and risk;
• Control and Management of Accounts Receivables – Popular Factoring provides an unique service on administration and control of customer’s sales ledger and collection of due debts, as well as regular and detailed information linked to collection activity;
• Financing - Advances of funds of a percentage over the invoices assigned;
• Personalized Collection Service – provides an outsourcing on collection management throughout the world, replacing his client in all collection procedures, allowing you to concentrate in your core business activity;
• Credit Risk Coverage – Popular Factoring provides 100% of credit risk protection of your clients, both in domestic and international operations.

Popular Factoring supports your operations among 50 countries on the five continents, through the biggest factoring network: Factors Chain International.

Whatever the kind of factoring you may need you may count on us to support you with the expertise of a leading company in Factoring activity.

EXPORT

will help to expand your business in new markets, with a proper credit risk analysis, avoiding the risk of debtor’s insolvency.
Collection management is handled all over the world by our local congeners with a specialised collection follow-up.

Export factoring works similarly to domestic factoring and therefore funds may be advanced on assignments made to Popular Factoring, as per your request, lightening the financial management of your company.

IMPORT

For the Portuguese companies that import raw material and consumer goods and that intend to increase their business with international suppliers, Popular Factoring through Factors Chain International, makes easier the payment to your suppliers.
Import Factoring is also indicated to companies located in other countries that intend to obtain credit risk protection on Portuguese debtors and/or collection services.

A management service for payment to suppliers, provided by Popular Factoring in association with Banco Popular Portugal, in which payments that your company has to make to its suppliers are assured, also offering them the possibility of receiving an advance on their collections.

Through this service, Popular Factoring, notifies your suppliers of the credits under payment and respective date of liquidation, giving simultaneously the possibility to request prompt payment of confirmed credits.

We guarantee to our customers support in two distinct phases. Before credits due date, confirming the payment to suppliers and offering, under request, prompt payment. After credits due date, the possibility to pay the invoices up to 90 days after credits due date.

Advantages of this service

For your company:

• Simplified administrative processes;
• Ability to obtain extra financing, deferring payment of invoices;
• Obtaining discounts for prompt payment;
• Improves your company brand in the market;
• Simplified form of access to a credit line.

For your suppliers:

• Possibility of immediate collection of their receivables;
• Obtaining a new financing facility without bureaucracies;
• Increased borrowing capacity, due to the fact that advances do not increase bank exposure;
• Amounts advanced can be eliminated from their balance sheet.