A/ In simple terms, factoring is the assignment of your account receivable (through invoices) to a company, in favor of a financial entity.

In exchange for this assignment, the entity advances you a portion of the total invoices, and then collects the amount of the invoices from the debtor (your customer).

A/ Factoring is a form of financing, and it is important to clarify that when you sign a factoring contract, you maintain the same responsibility as the debtor company (your client) for the payment of the credit.

A/ At Banco Delta we work with invoices from public and private companies; we previously analyze the companies and invoices that our clients bring us, in order to evaluate their repayment capacity. Once you bring us the invoices, we will be able to tell you whether or not they apply for factoring.

A/ Factoring is today a widely used and well known financial tool. Surely all your customers are familiar with this tool and will understand that you are an entrepreneur who knows all your financial options to grow your business.

R/ Once the debtor company (your client) is collected, within the agreed time and conditions, the factoring is cancelled and the retained amount is returned.

A/ Once you make the factoring process with Banco Delta, we will take care of the collection of the invoice from the debtor.

A/ At Banco Delta we can finance up to 90% of the total value of the invoices you factor.

A/ For now Banco Delta specializes in pure factoring, i.e. we only work with invoices already presented and accepted by the debtor.

R/ Any type of invoice can be negotiated, as long as it is a recognized debtor.

R/ Any natural or legal person with at least one year of activity, who performs profitable and lawful commercial activity, which generates invoicing for credit sales to recognized companies or government entities that need to improve the cash flow of the business.

Both micro and small businesses apply.

A/ You can always make the decision to wait for your customer to pay you, but many times business demands and opportunities require that we have cash well before the period in which our customers pay us (30-60 and sometimes up to 180 days to receive payments).

That is why factoring is one more financial alternative to have the money that the business needs at any given time. Remember that the most expensive money is the money you don’t have when you need it.

• Factoring allows you to inject liquidity into your business through the sales you have already made to your customers, but often take a long time to collect due to your customers’ accounting processes.
• It is faster and easier than normal financing.
• Converts credit sales to cash sales.
• You receive immediate liquidity upon presentation of your invoice duly received by the buyer.
• It does not increase the company’s indebtedness.
• Level cash flows in case of seasonal sales.
• It optimizes resources by reducing administration and collection costs.

In the case of Negotiation of Invoices of Private Companies:

• Original invoice and tax invoice.
• Copy of the Purchase Order or Order to Proceed duly authorized.
• Conformed receipt of the invoice by the company.

In the case of Negotiation of Invoices of Governmental Entities:

• Collection Management Original duly signed.
• Original invoice or tax invoice.
• Copy of the duly authorized Purchase Order or Order to Proceed.
• Copy of the Substantial or final delivery act, as required.

Natural Person:

• Copy of ID or Passport.
• Signature of APC Form.
• Copy of Notice of Operation.
• Two Bank Reference Letters.
• Two Letters of Commercial References.
• Financial Statements 2013-14 and Interim Financial Statements as of Month Ended.
• Income Tax Returns (last).
• Operating Account Movement (Bank) for the last 12 Months.

Legal Entity:

• Copy of ID or Passport of Dignitaries.
• Signature of the APC Form on behalf of the company’s Dignitaries (single form).
• Signature of the APC Form in the individual name of the company’s Dignitaries.
• Copy of Notice of Operation.
• Articles of Incorporation and Amendment (if any).
• Certification of the Public Registry of Corporations.
• Paz y Salvo de Tasa Única.
• Paz y salvo del MEF.
• Two Bank Reference Letters.
• Financial Statements 2013-14 and Interim Financial Statements as of Immediate Month Ended.
• Income Tax Returns (the last 2).
• Operating Account Movement (Bank) for the last 12 Months.

• Both are widely used financial instruments.
• With factoring, you request money based on an account (invoice) that you have submitted to your customer and that is pending collection.
• With a traditional loan, you request money from a bank in exchange for some other type of collateral required by the bank.