Frequent questions

Our approach differs significantly from that of a traditional bank or bank subsidiary. While taking into account your credit history, working with us gives you the edge to leverage the creditworthiness of your customers which makes it a lot easier for us to provide you with a fast credit approval based on the quality of your customers.

Considering our approach to credit approval is heavily based on your receivables, it is key for us to assess the quality of the receivables themselves. We will undertake our own credit assessment for each prospective debtor in order to ensure that we have an expectation of being repaid before providing financing.

We have internal credit assessment tools that take into account the debtor’s financial strength, the overall market conditions and business sector dynamics amongst other factors.

Flexfin’s services are designed to help your company by offering you financing and other related services. FlexFin does not alter or affect the commercial relationship between you and your client in any other way.

The terms of your existing commercial agreements continue to apply and are not modified in any way. You only need to inform your clients through the assignment process that from now on any payments will be made to Flexfin’s bank account.

In case you have chosen to receive financing against any receivable, Flexfin will repay you the residual upon payment of that receivable by your client/the debtor (after deducting any fees, charges or past dues), otherwise the entire payment (excluding any fees, charges or past dues) will be credited to your account.

The overall process of invoicing your client remains the same. However, every invoice issued following the initial assignment should include a short text indicating that it is assigned and payable to Flexfin.

We will provide you with the relevant template of the assignment letter that you need to send to your customers (approved by Flexfin), notifying them that you have adopted our services, and that within that context any payments in relation to your products or services going forward should be made to Flexfin.

Flexfin will also send a similar notification of assignment to your customers to inform them that payment for those receivables can only be made to Flexfin.

Typically, your customers should return the assignment letter duly signed and stamped. Most large purchasers are familiar with factoring so in most cases no objections willbe raised. The assignment process is often smoother if the intention is communicated to the buyer in advance of sending the assignment letter.

Factoring is a well-established and widely accepted financing tool. Your clients are likely to be used to their suppliers factoring invoices and have often taken advantage of factoring services themselves.

In order to achieve and maintain a solid monitoring of your account receivables and transactions between you and the clients whose receivables you have assigned to us, as well as to minimize the hassle for your clients, assignment of all your invoices to those clients/debtors that you have selected is required (however, you can choose to finance only a subset of these invoices).

At the start of our customer relationship and at any point thereafter you can request for any client/debtor to be added to the approved list of debtors for which we can offer factoring services. Flexfin will provide factoring services in relation to approved debtors only, on the basis of its own credit assessment policy. Larger and more creditworthy debtors/buyers are more likely to be approved.

Flexfin currently accepts invoices where:

• Products or services have been completed or delivered and accepted by your customer.
• The customer is based in Greece or Cyprus.
• The customer is a business entity and not an individual.

In the future Flexfin will also provide financing for purchase orders, but that product has not been rolled out yet.

We focus on the financial strength of the buyer, regardless of their sector, so we consider all sectors.