Invoice Discount or Factoring

Turn your credit invoices of 30, 60, 90 days or more to cash, now.

It is a financial transaction, in which a factoring company (PASFIN S.A.E.C.A.) purchases invoices or any other credit document (Accounts receivable), from the sales of goods and services, to a manufacturer or trader (You), with an established discount rate. By factoring you turn the account receivable to cash, this allows you to improve the cash flow and to keep the growth focus of your Company, this way you don´t need to wait 30, 60, 90 or even more days to collect the invoices to keep working, in addition to this, you don´t need to worry about the process of collectivity of your clients.

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How does Factoring work?

proceso-factoring-eng

Benefits of Factoring

  • Improves the cash flow of the company by turning the account receivable (of 30, 60 or more days) in to cash.
  • You don´t need to worry about dates and the collecting process; Pasfin S.A.E.C.A. automatically becomes the Collecting Department.
  • The discount price and the service offered by Pasfin S.A.E.C.A. is competitive, comparing to Banks or any traditional financial service.
  • The company has access to operative capital, to salary and productivity increase.
  • It simplifies the accounts, because through Factoring the company have only one client (Pasfin S.A.E.C.A.) that pays on cash.
  • You don´t lose any clients, by not being able to wait the pay date of the invoices.

Maturity: Minimum 30 days - Maximum 180 days.

Annual Percentage Rate (APR): Between 18% (minimum) and 36% (maximum).

The Effective APR applied to all the products we offer fluctuate according to supply and demand, but they respect the interest rate limits established in Article 1 of Law No. 2339/2003 "ORGANIZATION OF THE CENTRAL BANK OF PARAGUAY ", since we are aware that the excess can lead to the nullity of our operations.

Practical example for a 12 months installment loan of PYG 100,000,000.-

With the maximum rate allowed by CBP regulation:

  • Loan amount: PYG 100.000.000.-
  • Administrative expenses (2%): PYG 2,000,000.-
  • Transfer expenses: PYG 500,000.-
  • Total Capital to be financed: PYG 102,500,000.-
  • Government Taxes on services and interests: PYG 3,690,000.-
  • Net disbursement to customer: PYG 96,310,000.-
  • Total to be paid (interest + capital): PYG 143.090.000.-

The calculation results in monthly installment of PYG 3,382,500 monthly, at a Effective APR of 40.9% which is within the limits established by the Central Bank of Paraguay.