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ALHow to obtain a Factoring service?
- Filling out a questionnaire and an application for foreign buyer’s limit and submitting them together with the required documentation at DBNM.
- Upon application approval, a factoring agreement is to be concluded (certified by a notary public).
- Each invoice is to be declared at DBNM, on basis of which, payment shall be made (advance payment of 80% of the invoice value) on the client’s/exporter’s account.
Beneficiaries of the Factoring service:
- Companies registered in the Republic of North Macedonia which sale goods and provide services abroad with deferred payment not exceeding 180 days.
In case the foreign buyer does not pay within 180 days of the invoice due date, the recourse shall be risen (DBNM will return the receivable to the client). The regular interest of 3,2% per annum shall be calculated for those 180 days and legal default interest shall be charged upon rising of the recourse.
Cost of Factoring:
The price of factoring is calculated on the basis of the advance payment of 80% of the invoice value and comprises of:
- Interest rate of 3,2% p.a. (interest is calculated on the advanced payment of 80% of the invoice value by using the actual number of days)
- Service charge of 0,25% of the paid amount of the invoice
Beneficiaries of the factoring service are:
- Domestic entities exporting goods and services with payment terms of up to 180 days,
- Domestic entities have to be in private ownership,
- Entity should have at least one year working experience, i.e. to have financial statements for one year, and
- To possess valid insurance policy and valid limit for the respective buyer.
Procedure for using factoring:
- The client submits the factoring questionnaire and application form for each buyer at DBNM. The approved limit for insurance is usually identical to the factoring limit (but not necessarily).
- DBNM makes analyses of the buyers and the client, thus setting a totallimit and individual limits for each buyer.
Example: The client X submits the questionnaire and application for 3 buyers in the following amounts: EUR 100.000, 200.000 and 300.000. In case of approval of the proposed limits, the total limit for the client will be EUR 600.000, and for each buyer it shall be as much as stated above. - An agreement on framework revolving limit shall be made and certified by a public notary (executive clause) and 3 drafts shall be signed.
- Upon signing the agreement on framework revolving limit, the client shall submit notification to each buyer to which the limit was approved, informing them that the client’s receivables are assigned to DBNM and that the payment of the future invoices should be made on the DBNM account.
- On the basis of the notification, the buyers should return a confirmation that they agree with the text.
- Upon completion of the above mentioned documents, the factoring may commence. The client shall submit specification for the invoices that shall be factored (these invoices are previously insured pursuant to the Insurance Policy).
- A fee of 0.25% is charged on the paid invoices amount and the client is obliged to pay it.
- Upon payment of the fee, a Purchase and Sale Agreement shall be concluded (should not be certified by a public notary).
- Payment of 80% of the invoices amount shall be made on the client’s account.
- Calculation and payment of the interest rate shall be made on monthly basis. The interest rate is 3,2% p.a. Interest rate is calculated until date of payment of the invoice by the buyer. The client shall pay the interest rate at the end of the month.
- Upon payment of the relevant invoice, DBNM shall pay the rest of the invoice amount of 20%. The payment shall be made upon fulfilling of all liabilities towards DBNM.
- In case the foreign buyer does not pay within 180 days of invoice due date, the recourse will be risen (DBNM will return the receivable to the client). Regular interest of 3,2% per annum shall be calculated for those 180 days and legal default interest shall be charged upon rising of the recourse.
Credit Insurance and Factoring Division Contact:
Tel: 02/3115-844, 02/3114-840 ext. 141, 142, 143, 144, 145.
e-mail: info.osiguruvanje@mbdp.com.mk