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Panama Export Factoring with Resource

We know that as exporter you need to enhance the cycle between your accounts receivable and accounts payable. Thus, at Bancolombia Panama we offer you Export Factoring with Resource, a financial solution that allows you to assign the credit documents issued to your foreign clients, thus improving your cash flow.

Modalities

Pursuant to your business model we offer two alternatives to contact this service:

With supplier’s resource with discount

Disbursement of a lower value of invoice.

With supplier’s resource without discount

Past due interests. Generally paid by the exporter (supplier) once the importer (payer) makes the payment of the value of the invoice on the date agreed.

Benefits of product

If you are exporter (supplier):

  • It allows improving the financial indicators by releasing working capital  and thus improving your cash flow.
  • It generates  the possibility to export higher volumes, at longer terms, to gain competitiveness without increasing the risk.
  • It does not limit the direct negotiation with your clients.
  • It allows consolidating better commercial relationships with your foreign purchasing clients.
  • It reduces the exchange exposure risk.
  • Advisory from our specialized sales team that will provide the advisory for the business structuring and guide for operations of this product.
  • It reduces the management cost of your portfolio.


It allows your  importer (payer):

  • Consolidate better commercial relationships with the suppliers.
  • Adjust the payment of import receivables to the business productive cycle.
  • Negotiate with your company longer payment terms and higher imported amounts.
  • Maintain the credit document as trade payables without financial indebtedness.

Characteristics

  • Maximum amount of disbursement: the Maximum Indebtedness Limit (MIL)* approved to the exporter (supplier).
  • Minimum operation term: 30 days.
  • Maximum operation term: 180 days, but according to the business cycle the operation with a term below a year could be reviewed.
  • Principal repayment: sole payment at the maturity of credit document. It allows the exporter (supplier) to choose between two options of interests principal repayment  early/past due.
  • Currency: it applies only to credit documents issued in US dollars.
  • Conditions: the form of payment  on the document subject to factoring, the term and cash discount, is agreed for each business where the operation rate varies according to the segment, risk quality of exporter (supplier) and the subject of negotiation.
  • Prepayment: for the modality with cash discount/advanced interests, the prepayments do not generate refunds to the exporter (supplier).
  • Extensions: upon the assessment of the exporter business cycle, provided the maximum term of the operations is less than 360 days.
  • Lien on Financial Transactions: Factoring transactions do not generate lien on financial transactions (4x1000), provided these are made to the exporter’s clearing account or through deposit in savings account, current account or issuance of crossed cheque and restricted negotiability on behalf of the exporter.
  • Associated costs: no costs are generated for account queries or queries to the statements of the product, issuance of certificates, certificates of good standing.

* Maximum Indebtedness Limit: Bancolombia Panama 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.

Rates and fees

Operation rates

They vary according to the sales of the company and the risk quality of exporter (supplier), the term of invoice, knowledge of importer (payer), discount granted by the exporter (supplier) and the subject of negotiation.

The default rate is agreed on the supporting documents of negotiation, generally 3 additional points to the rate of the operation.

Rates

Query to rates.

How to access Bancolombia Panama Export Factoring with Resource

Once the legal documents have been signed, the financial conditions must be agreed with Bancolombia: rate, term, discount, form of disbursement and modality.

To request an operation, the exporter (supplier), must submit following documentation:

  • Letter of assignment of Credit Documents.
  • Copy of credit document.
  • Copy of transport document as proof of merchandise shipping.
  • Letter of notification to importer (payer) or letter of acceptance, in the event it is possible to get one.
  • Certificate of Existence and Legal Representation if the importer is a Colombian legal entity.
  • Certificate of Commercial Registration if an individual resident in Colombia.

 

*If you are exporter resident abroad, you must submit the documentation as provided in your country of residence.

 

Documents

Affiliation

Affiliation form to Bancolombia Panama
Registry of Authorized Signatories
Registry of Stamps (if applicable)
Registry of Signatures
Certificate of Corporate Minutes (if applicable)
Documents of affiliation and credit analysis according to the request of the commercial manager.  
Documents of affiliation and credit analysis according to the request of the commercial manager. (instructivo de persona jurídica).

Information related to Bancolombia Panama Export Factoring with Resource
  • Termination of product

    Termination of this product is subject to the end of your contractual relation with Bancolombia Panama. 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 Bancolombia Panama.
    • 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.

    * 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.

    ¡Get the financial efficiency for your business!

    Export factoring with resource is an excellent option to exporters (suppliers) as it is your case.  You can have liquidity and improve your business cycle while your clients receive your products with competitive payment terms.

    Contact your commercial contact for further information on this product.

    If this is not what your company needs, learn about plus options to manage your export invoices.