DOCUMENT DISCOUNT

Short-term financing instrument, which allows a company to manage its working capital and improve its cash flow in the natural negotiation of sales and/or purchases on credit. This mechanism provides liquidity from the purchase of securities at discount, thus facilitating longer terms for payment.

The different modalities offered by Bancoldex are shown below.

LIQUIDEX PESOS DOLLARS
LIQUIDEX PRODUCTIVE CHAINS
LIQUIDEX PLUS
FACTORING
CONFIRMING
TRIANGULAR LINE

Portfolio purchase at discount from the seller, having previously insured its clients through a portfolio insurance policy. Therefore, it is a product without recourse against the seller.

This scheme allows optimizing national suppliers’ resources, by discounting sales invoices and/or bills of exchange, as a result of national credit sales or exports of goods and/or services.

BENEFITS:

Access with three insurance companies
Non-recourse discount
It minimizes credit risk with clients
It allows negotiating longer payment terms, quotas and sales
Immediate liquidity
Credit quotas with commercial banks are not affected
No additional warranty required
Maximum term up to 180 days
Days in arrears are settled at the same discount rate (no moratorium rate is charged)
Interest rate and access requirements according to market conditions

Purchase of securities at discount without recourse to suppliers, from the same buyer with a quota approved by Segurexpo, by means of a global policy held by Bancoldex.

The supplier pays for the transaction costs.

BENEFITS:

It strengthens long-term supplier relationships
It guarantees working capital to suppliers at a reasonable cost
No cost for the buyer
Seller pays for the transaction costs
No recourse to the seller
It allows to negotiate longer payment terms
Immediate liquidity
Credit quotas with banks are not affected
No additional warranty required
Maximum term up to 180 days
Days in arrears are settled at the same discount rate (no moratorium rate is charged)
Interest rate and access requirements according to market conditions

Purchase of securities at discount without recourse to suppliers, from the same buyer with a quota approved by Segurexpo, by means of a global policy held by Bancoldex

The supplier pays for the transaction costs.

BENEFITS:

It strengthens long-term supplier relationships
It guarantees working capital to suppliers at a reasonable cost
No costs for the buyer
Seller pays for the transaction costs
No recourse to the seller
Immediate liquidity
No additional warranty required
Maximum term up to 180 days
Days in arrears are settled at the same discount rate (no moratorium rate is charged)
Interest rate and access requirements according to market conditions

Factoring with recourse is the modality used by Bancoldex to meet the liquidity needs of clients’ companies immediately by discounting invoices or contracts. This product allows companies to solve their financing needs by making use of one of their most valuable assets: their portfolio.

BENEFITS

Supplier

Payer

Obtain liquidity through portfolio discount.
Improve the company's financial management indicators.
Have access to timely information on the transactions through the bank’s Factoring platform.
Access to attractive financing rates.
Optimization of portfolio management and collection.

Through the bank’s Factoring platform, clients may generate reports on the operations carried out. This facilitates reconciliation activities and makes the supplier payment process more efficient.
Clients may offer their suppliers the possibility of anticipating the portfolio collection without affecting the payer’s working capital indicators.

This operation is carried out through an agreement with a Large Payer to discount its invoices and provide early liquidity to its suppliers. This operation may be with or without recourse from the invoice issuer.

BENEFITS
Supplier	Buyer
Early liquidity through portfolio discount. Improvement of the company's financial management indicators. Access to timely information on the transactions through the bank’s Factoring platform. Access to attractive financing rates. Optimization of portfolio management and collection. Information on the transaction costs from the beginning.	Buyers may handle flexible terms through agreements and without additional costs. Greater control over accounts payable, minimizing the risk of error when paying invoices. It contributes to good management of suppliers’ working capital by ensuring permanent flow of goods and services. Control on the flow of invoices available for discounting by means of authorizing only those invoices that fully meet the conditions established for payment..

This operation is based on a payment agreement established with the supplier, where resources are provided to the buyers so that they may pay the supplier in a timely manner. Clients have the possibility of accessing longer terms than those initially granted by their supplier.

USE OF COMMERCIAL DISCOUNTS

Similarly to the triangular line, this option seeks to optimize the discount granted by the supplier. No previous agreement is required.

BENEFITS
Provider	Buyer
Improve portfolio turnover by generating efficiency in working capital management. Minimize portfolio risk. Increase clients' purchase power. Bancóldex has a platform that will provide updated information on the payments made by clients.	Handle extended terms through agreements with or without cost. Optimize cash discount management; decide when to pay according to cash flow. Strengthened relationship with suppliers and access to discounts and bonuses for volume purchases. Access to timely information on transactions through the bank’s platform.