Portfolio Guarantees for Factoring Transactions 2
What are the benefits?
The Portfolio Guarantees for Factoring Transactions 2 Facility (hereinafter referred to as the Portfolio Guarantees for Factoring 2) facilitates the financing of trade transactions for micro, small and medium-sized enterprises (SMEs).
Who can apply?
Micro, small and medium-sized enterprises.
What is the maximum amount?
The maximum amount of one factoring limit is EUR 1,875,000, or EUR 937,500 in the case of road freight transport companies. The maximum financing period for a factoring transaction is 12 months. At the end of the factoring financing period, a new factoring transaction may be concluded with the SME.
How does it work?
Each factoring transaction in the portfolio of a financial institution participating in the Portfolio Guarantee Factoring 2 Facility will be allocated an 80 per cent guarantee, but the total amount of payments must not exceed the ceiling of 20 per cent of the amount of guarantees of the formed factoring transaction portfolio.
The portfolio guarantee for factoring is provided as de minimis aid under Regulation 1407/2013.
The guaranteed portfolio must include recourse factoring transactions with respect to the beneficiary of the factoring transaction.
Under this facility, factoring transactions are financed and documentation is prepared by the participating financial companies in accordance with their internal policies and procedures.