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Factoring Plus

Reducing time on your receivables is possible. Factoring Plus is an alternative that allows you to improve portfolio turnover and increase liquidity by selling credit documents.

Modalities

With supplier’s resource or responsibility

The supplier (customer) assigns or endorses credit documents and becomes responsible before Bancolombia in case the debtor (payer) fails to comply its obligation.  

Without supplier’s resource or responsibility

Bancolombia purchases invoices to the supplier and assumes payers default risk. 

Benefits

If you are a supplier (customer) you:

  • Attain lower level of indebtedness through financial mechanisms that grant liquidity on your portfolio.
  • Speed up and optimize the portfolio collection, reducing collection and management costs.
  • Obtain reliable information on your invoice discount operations through the V Factoring Bancolombia Online Office.
  • Have access to a differentiating rate, given that the product assess quality of the payer, regardless of the modality that is being negotiated.
  • Do not create financial indebtedness in case it is a factoring operation without resource from the supplier.

If you are a payer you:

  • Obtain security upon management of credit documents wherein you are the debtor.
  • Offer to your suppliers the opportunity to reduce their accounts payable, without affecting your working capital indicators.

Factoring Plus Characteristics

  • Physical invoice: must be duly endorsed in favor of Bancolombia from its origin.
  • Minimum term of the operation: 1 day.
  • Maximum term of the operation: 180 days.
  • Minimum amount per operation: COP 500.000.
  • Maximum amount per disbursement: according to the Maximum Indebtedness Limit (MIL)* approved for the product.
  • Rate modality: fixed or variable (according to the DTF).
  • Currency: applies for credit documents issued in Colombian pesos.
  • Document form of payment and term, and discount upon prompt payment: upon agreement with the supplier (invoice customer), in accordance with the document of financial conditions or that provided for each operation, as the case may be.
  • Terms: depends on the negotiation with each customer.
  • Maturity: Bancolombia recognizes the present value of the document that has future maturity, once the original sales invoice has been delivered by the supplier; this document must be duly endorsed and accepted by the payer.

 

* 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.

  • Tax charges: disbursements are not subject to lien on financial transactions (4X1000) provided that these are paid directly to a savings account, current account, or by issuance of a crossed check and restricted negotiability in favor of the vendor. The lien on financial transactions (4X1000) shall be accrued to the supplier upon disbursement to a third party.
  • Discount returns due to prompt payment to the vendor and generated by operations performed are subject to withholding tax.

 

Rates and fees

  • Operation rates vary in accordance with the segment and risk quality both from the supplier (customer) and the debtor (payer), and from the subject of negotiation.
  • The maximum rate for any Factoring Plus operation is determined by the discount percentage granted by the exporter upon negotiation.
  • The default rate is the maximum legally allowed. It does not generate costs related to maintenance, operations, balance and product statement checks, issuance of certificates, good standing, clarification letters or any type of communication requested by the customer to the different channels offered by Bancolombia.


To obtain additional information about the rate, please contact the commercial contact at Factoring Bancolombia, a Bancolombia brand.

Access to the product

How to access Factoring Plus

  • Send the documents and requirements demanded for engagement and product opening.
  • Bancolombia shall establish the financial conditions such as: rate, term, discount and form of disbursement.
  • Send the invoices with the corresponding endorsement or assignment: letter of endorsement or assignment delivered by the supplier or customer to Factoring Bancolombia, a Bancolombia brand. Letter of endorsement or assignment delivered by the supplier/customer to the debtor/payer.
  • Attach the relation of invoices payable accepted by the debtor/payer: letter of acceptance of invoice endorsement/assignment by the invoice debtor.
  • Bancolombia shall carry out the disbursement.
  • To enter new accounts for invoice payment, you must complete the account registry request form which may be found at the companies Online Office, and send it over to Bancolombia. This request must be signed by the legal representative.
  • In order to carry out the operation and check your account statement, please enter your user name and password to the Factoring Bancolombia Online Office.

Documents

Engagement

 

Engagement documents (payer)
Engagement documents (supplier)

Related information
  • Clarifications

    • The credit document which shall be discounted must fulfill the minimum requirements demanded by Factoring Bancolombia, a Bancolombia brand.
    • Only those credit documents within the first chain of endorsement are discounted.
    • It does not generate costs related to maintenance, operations, balance or product statement checks, issuance of certificates, good standing, clarification letters or any type of communication requested by the customer to the different channels offered by Bancolombia.

     

    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.

    Proceedings for product cancellation

    The termination of this product is subject to the termination of your contractual relation with Bancolombia. Generally, the contractual relation term is indefinite, and each party may terminate it through written notice delivered 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.

    * 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.

    Do you need to achieve efficiencies upon collection of receivables?

    Your commercial contact will provide you detailed information about this product, if you do not have one:


    Or contact our National Customer Service Center at 018000 930 011

    Factoring Plus to improve your plus efficiency.

    If this is not what you were looking for, learn about additional options to improve your financial efficiency.