Frequently asked questions about Factoring on Time

Factoring is when a Company assigns to Millennium (Factor) the right to collect short-term receivables it holds against its Customers, resulting from the sale of products or services. Millennium manages and collects these receivables and can also advance funds to the Company. The Company that sells the products or services is called the Client, and its Customers are referred to as Account Debtors.

A Factoring contract includes the following services:

• Debtor analysis: we analyze the specified Customers (Debtors) and, for regular operations, define advance sub-limits.
• Management and collection: Millennium manages and collects the assigned receivables.
• Financing: you can receive an advance on a percentage of the assigned receivable value.

There are no specific limitations. Factoring is available to any company that sells products or services on credit to other businesses.

No. Factoring is more than just a way to access financing. It allows companies to receive advances on the value of invoices issued to Customers (from sales on credit), providing an additional financing option beyond traditional bank methods.

In addition to financing, factoring offers valuable services in managing and collecting these invoices.

The management service starts with the assignment of invoices to Millennium, which then takes over their collection.

Factoring’s collection service can help reduce the average collection period without harming the commercial relationships between clients and debtors.

Yes, Millennium’s specialized collections team provides a tailored service that balances efficiency with the right level of communication, based on the needs and instructions of the client company. Their expertise and experience ensure effective and professional collections.

The advance limit is negotiated individually with each client company based on the volume of assigned invoices and other factors.

Yes. Invoices eligible for assignment must not be overdue and should have a maximum payment term of 120 days.

It depends on the type of Factoring agreement:

• In a single invoice factoring operation, the client company assigns only the specific set of invoices that have been defined and approved;
• In a full or continuous factoring operation, the client company must assign all invoices issued to the contracted debtor(s) to Millennium.

This is managed through the Debtors Notification Process.

We typically notify the debtor that they should pay the invoices directly to Millennium. The debtor then signs and returns a copy of the notification to Millennium, confirming receipt of the assignment of credits to Millennium and acknowledging that payments should be made to us.

On the Millennium Corporate homebanking, under the Banking Operations section, Business or Sole Trader Clients (Client Companies) can manage their Factoring contracts through the following features:

Contracts:

• View summaries
• Check availabilities
• Access statements
• Monitor current and overdue credits.

Collections and credit portfolio:

• Access detailed information with filtering options.

Requests:

• Request advances
• Add Debtors
• Change sublimits
• Submit Credit Assignment Files
• Create Credit Assignments online.

These features provide comprehensive tools for overseeing contracts, managing collections, and handling various requests related to factoring.