Factoring is a short-term financial product, for supporting cash flow and the collection management service. It consists in the transfer of invoices to Nedbank Mozambique by the client (member/adherent), regarding entities to which it provides goods and services (debtors).

Participants in the factoring relationship

• Factor - Bank to which the credit is ceded and, as a result, assumes responsibility for collecting it  from the debtor
• Subscriber/Adherent - Client with which the factoring contract is celebrated
• Debtor – Adherent’s clients

There are 2 factoring plans available

• Easy factoring, a one-off contract
• Complete factoring, a continuous contract

Benefits

• Reduction of the administrative workload associated to the invoice collection process, follow-up of debtors, communications, issuing  of warnings and receipts, allowing efforts to be focused on the production and commercial areas
• Guarantee of greater negotiation power when dealing with suppliers and rationalisation of cash management
• Reduction of possible losses from uncollectables
• Advance of funds via  transformation of credit sales into money