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Factoring Bancolombia Confirming

At Factoring Bancolombia, a Bancolombia brand, we want you to have a solution that allows having immediate liquidity over accounts receivable from your clients (payers), through the sale of credit documents.

Also, the large payers may process easily their payments, which contribute with their financial efficiency, extend the term of their accounts and obtain deductions.

Modalities

With supplier’s resource or responsibility

The supplier (client) assigns or endorses the credit documents and is liable before Bancolombia in the event that the debtor (payer) defaults the obligation.

Without resource or firm purchase agreement

Bancolombia acquires the supplier’s invoices and undertakes the risk of non-payment by the supplier.

Benefits

If you are payer you can:

  • Improve the financial indicators: Net Operating Working Capital (NOWC), Working Capital Productivity (WCP) and Economic Value Added (EVA).
  • Obtains the possibility of paying a lower value for the credit document, by taking advantage of the early payment discounts whenever your cash flow allows for it, instead of when the supplier demands it.
  • Operations through Internet. It facilitates recurring operations without additional proceedings or documentation and makes safe information of all your transactions.
  • Reduce the operative load for management with suppliers to request information of pending payments.

If you are supplier, you can:

  • Improve your working capital indicators to obtain immediate liquidity on your credit portfolio.
  • Speed up and optimize the portfolio collection, which reduces administration and collection costs.
  • Have information available of invoice discount operations.
  • Make a factoring transaction without resource of the supplier; Bancolombia will analyze the payer’s credit capacity, which provides a higher negotiation capacity and does not generate financial debt.

Characteristics

  • Maximum amount of disbursement: according to the Maximum Indebtedness Limit* approved.
  • Minimum operation term: 1 day.
  • Maximum operation term: 180 days.
  • Interest modality: at maturity. Applicable only on days with cost.
  • Rate: fixed or variable, per DTF.
  • Currency: it applies to credit documents issued in Colombian pesos.
  • Terms and conditions: the terms and conditions depend upon the negotiations made with each client/supplier.
  • Operation: payment from Bancolombia on the document subject to factoring, the term conditions of the document subject to factoring, the cash discount, and any other aspects related to the operation, will be agreed with the supplier and payer abiding by the financial conditions document or with what has been agreed for each operation, as applicable.
  • Tax costs: the disbursements for Factoring operations are exempt from payment of lien on financial transactions (4X1000), provided they are made through deposit in savings account, current account or issuance of checks with restrictive crossing and restricted negotiability on behalf of the supplier. When the disbursement is made to a third party, the lien on financial (4X1000) will be accrued to the supplier.
  • Cash discount refunds to the payer generated from operations made will be applied with the tax withholding at 7% on the value to be refunded.

* Maximum Indebtedness Limit: Limit pursuant to the conditions agreed in the covenants, provided the requirements and procedures agreed for each one of the operations are met.

Rates and fees

  • Operation rates vary according to the segment and risk quality of debtor/payer and the purpose of the negotiation.
  • The maximum rate of any operation of Factoring Bancolombia Confirming is determined by the percentage of discount granted by the supplier at the time of negotiation and at the fixed interest rate for the additional days at the cost negotiated with the payer.
  • Default rate is the maximum legally permitted.
  • No associated costs are generated for maintenance, operations, account queries or queries to the statements of the product, issuance of certificates, certificates of good standing, explanatory letters or any other type of communication requested by the client through the different channels offered by Bancolombia.

In order to obtain further information on the rate, please contact your commercial contact.

How to access this product

How to access Factoring Bancolombia Confirming

  • Send the documents and requirements for application and binding to the product.
  • Bancolombia sets the financial conditions: rate, term (additional days with or with no cost), discount and form of disbursement.
  • To enforce the disbursement, the payer (debtor of the invoice) records through the load process at the Factoring Bancolombia Online Office, the detail of credit documents to be deducted in the pre-set form.
  • The supplier must enter into the Online Office in order to confirm the credit documents to be assigned to Bancolombia.
  • Bancolombia makes the disbursement.
  • To enter new accounts for payment of invoices, complete the request form for accounts registry that is at the Online Office and forward it to Bancolombia. Such request should be signed by the legal representative.
  • For consultations about operations, the supplier/payer should enter with user name and password to the Factoring Bancolombia Online Office..

Documents

Binding

The binding and studies of client/ supplier documents

Documents for payers.

Documents – supplier-confirming

Related information
  • Cancellation proceedings

    The termination of our products is subject to the end of your contractual relation with Bancolombia. In general, the effectiveness of the contractual relation is indefinite and each of the parties may terminate it through written notice to the other party.

    Grounds for termination

    Termination for the Maximum Indebtedness Limit (MIL):

    • The MIL that was approved must be renewed each year; contact your commercial contact in Factoring Bancolombia, a Bancolombia brand.
    • The MIL may be blocked for expiration of the term, inactivity, default or administrative or commercial decision.
    • If the MIL has been inactive for 6 months or more, the request for reactivation should be made to the commercial contact in Factoring Bancolombia, a Bancolombia brand.

    * Maximum Indebtedness Limit: Bancolombia would be willing to make operations for up to the amount of the MIL, per the conditions agreed in the covenants and provided the agreed requirements and procedures are fulfilled for each one of the operations.

    ¡Paying the purchases to your suppliers might be easier!

    With Factoring Bancolombia Confirming you get an increase in the term for payment of your accounts payable and take advantage of the discounts offered by your suppliers. Consult your commercial contact for more information about this product.

    Factoring Bancolombia  Confirming to pay trade   payables to your suppliers.

    If this is not what you need, explore more options for managing your accounts payables or accounts receivable.