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Frequently Asked Questions

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General Questions

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What is Trade Finance?

Trade finance signifies financing for trade of goods and services, and it concerns both domestic and international trade transactions.

What is Invoice Discounting?

Invoice discounting is the financing of an invoice which is due at a future date. You sell your outstanding invoice to Eurivex, and we pay you up to 90% of the total invoice value in advance. After we receive full payment of the invoice from your debtor, we shall transfer the remaining balance to you, less our fees, which are of course agreed in advance.

How and why you don’t take personal guarantees?

Eurivex offers its alternative funding solutions to businesses based on ability to repay, debtor quality and diversification, financial strength and future prospects. The only collateral we take is the invoice that has been assigned to us.

Must my business be profitable?

In general we prefer to transact with businesses that are profitable, but the issue of profitability will depend on the facility you are seeking. For international trade or when invoices are credit insured, there is no such requirement.

What type of businesses are eligible for financing?

An operating legal entity which is engaged in the selling of products or services and issues credit invoices that have been accepted by its debtors is eligible for invoice financing. In general, we accept all legal entities operating in the EEA and involved in most areas of economic activity that are not on EU/UN sanctions list.

What is the list of high-risk sectors?

The following sectors are considered as high risk:

  • Weapon manufacturers;
  • Art and antique dealers;
  • Unregulated charities;
  • Unregulated “non-for-profit” organisations;
  • Electronic gambling /gaming through the internet;
  • Dealers in high value or precious goods;
  • Remittance houses;
  • Exchange houses;
  • Betting;
  • Gambling related;
  • Bank note traders;
  • Cash intensive business;
  • Adult industry

What is the minimum annual turnover to become a client?

There is no minimum. Eurivex specializes in serving the Small and Medium Sized Enterprises (SMEs).

Is there a geographical restriction on location of clients?

Eurivex serves legal entities established in all countries and enterprises that are not under the EU’s Sanctions List.

What about the location of Debtors?

There is no restriction on the location of Debtors, but we may decline Debtors who are not credit-worthy irrespective of where they are based.

Is there a minimum Debtor diversification rule?

We offer our alternative funding services to companies that have a satisfactory spread of customers and avoid dealing with companies with high concentration of risk.


New around here ? Start With the Basics

How does a Company register to become a trade finance client?

Very simple. You need to complete and send the Contact Request form available from our web site, after which we shall arrange a face-to-face meeting to understand your business and funding needs.

Are there any setup fees?

To open an account no, there are no setup fees.

How does a Company secure funding limit?

You will need to complete and sign the Terms and Conditions Agreement and provide us with the following documents to help us conduct a credit assessment to agree on the funding facility that your company requires. The following documents will need to be provided:

  • Company Certificate of Incorporation;
  • Register of Directors;
  • Register of shareholders;
  • Tax Identification Number (TIN) of the Company;
  • VAT number of the Company;
  • Articles and Memorandum of Association of the Company
  • Good Standing Certificate
  • Passport copies of all directors and major shareholders
  • Proof of address of all directors and major shareholders not longer than 3 months
  • Where the Director or Shareholder of the Company is another Legal Entity, the same procedures need to be followed and the above documents and information submitted.
  • Latest audited financial statements
  • Management accounts
  • Debtor ageing analysis

Why do you need so much information?

Eurivex Trade Finance Limited follows and implements the Know-Your-Client (KYC) procedures and EU’s Anti-Money Laundering (AML) regulations before granting clients access to our services. We must also be able to prove our process is compliant with the regulations, and so the documents we require from you are part of this process.

Furthermore, the same information is shared with our parent company, Eurivex Ltd, which is regulated by Cyprus Securities & Exchange Commission (CySEC) and operates in line with the EU’s Anti-Money Laundering and MiFID II guidelines and for this reason we need to have complete information on the clients with whom we transact business.

Such information is also necessary when we shall be transferring money to your bank account after the invoices or Letters of Credit are discounted and when your Debtors settle their outstanding balances directly to us.

How long does it take to process my application?

If you have submitted all the required information, then the process will take 48-72 hours to complete. Where it will be required for Eurivex to verify some of the documents provided or seek further clarifications, then this will mean additional delays for which we are not responsible.

Invoice Discounting

New around here ? Start With the Basics

How do I secure the funding limit?

On application, you will request a funding limit for your company and individually per your Debtor/Customer. The more information you provide about your business and your Debtors, the faster and easier it will be for us to give you the funding limits so that you may start selling your invoices and improve your liquidity

What kind of information do you require?

You shall need to provide your latest audited accounts, be in a position to provide regular management accounts and debtors ageing report. Additional information such as number of credit notes, disputes and dispute settlement as well as your future business expectations will help. All the above will help us determine and set the funding limits.

How do I sell the invoice?

Once the funding limits have been agreed, all you need to do is simply send us the invoices you wish to sell pertaining to the Debtors to which we have agreed we shall provide funding facility. Simple as that. For approved Debtors, the money is immediately wired to your bank account.

How do I provide the information?

You may send us the invoices in the following two ways.

  • Key in the information using our online assignment form.
  • Upload all your invoice information directly into our online system. This is by far the fastest way and most preferred way both for us and our clients.

Do I have to sell all my invoices?

No. You have the ability and flexibility to choose to discount the invoices pertaining to specific Debtors. But once you assign the specific Debtor to us, then all the invoices pertaining to that specific Debtor need to be assigned to us.

Is there a limit on the maturity of invoices?

Usually the maturity of invoices is within and up to 120 days and all such maturities are acceptable.

s there a maximum amount on the facility limit?

We have no minimums and maximums.

My invoice has been disapproved for funding. What does that mean?

Your invoice may be disapproved for funding either because your account exceeds the funding facility set for you or because the funding limit of your debtor has exceeded the limit, or your debtor has failed to settle the invoices assigned to us.

Who is the buyer of my invoices?

Eurivex is the buyer of your invoices.

Where will you settle my money?

The funds available for withdrawal will be sent/wired to your designated bank account through SEPA/Swift transfers.

Who will know that I’m discounting my invoices?

If you have chosen our Confidential Invoice Discounting service, then our arrangement with you will remain confidential.

Do the Eurivex Agora platform investors see my invoices?

No. When we discount an invoice, we assign a transaction ticket number to it and then it is offered to investors through the Eurivex Performance Linked Notes that mirror your transaction in terms of amount, maturity and interest rate, but the identity of you and your debtor is not shared with anybody else.

Confidential Invoice Discounting

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What is Confidential Invoice Discounting?

Confidential Invoice Discounting Facility is a form of invoice finance that can boost a company’s cash flow by releasing funds from unpaid invoices for immediate use. The facility is confidential (as indicated in its name), meaning that debtors are not informed that such an arrangement is in place.

How does it work?

The business and the invoice finance provider agree on a Confidential Invoice Discounting advance rate.

When the business raises an invoice to a debtor, it uploads invoices to the invoice finance provider, who will forward the cash advance to the business, usually within 24 hours. As the facility is confidential, the business conducts its own credit management and collects payment from the debtors.

The debtor deposits the payment into a bank account in the name of the company but allowing the finance provider with access rights. Once the debtor has paid up, the invoice finance provider releases the outstanding funds from the invoice to the business.

Do you control my entire Sales Ledger?

Yes, in Confidential Invoice Discounting you will need to pass all your invoices through Eurivex, in contrast to the traditional invoice discounting where you decide which of your Debtors to assign to us.

What is the application process for Confidential invoice discounting?

You complete our online account opening application and arrange to have a meeting with one of our relationship specialists. You will need to provide full details about your company, including providing us with your latest audited accounts, provide regular management accounts as well as your debtor ageing analysis.

What kind of due diligence will you perform?

We shall evaluate your company financial position, the quality of your debtors and inform you the level of funding approved for your company.

Do I need to inform my Debtors?

No, there is no need to inform your Debtors about the arrangement. However, from time to time you will be required to ask your Debtors to validate the amount they have outstanding to you, which again will be done confidentially but is necessary for reconciliations and control purposes.

Why do I need to set up new Bank account?

The new account will be in your name, but we shall also have access to it. You will need to inform all your Debtors to settle their obligations to this specified bank account. This account is also used to pay your fees.

How do I withdraw funds?

Very easy. You submit your invoices and make the request for fund withdrawal.

Credit Insurance

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Can you insure my debtors against risk of default?

Yes, we have made arrangements with the world’s largest credit insurance company to credit insure your debtors selectively.

What do you mean selectively?

Our Credit and Risk Management department will do a preliminary evaluation of your debtors and then once the facility is approved, we shall assign limits to each debtor and arrange for the specific debtors to be credit insured. If we don’t approve your debtor, such debtors will not be credit insured.

What is the maximum percentage of credit insurance?

It depends on many factors, but in general, it will not exceed 90% of the risk.

Is the cost for credit insurance merged with other costs?

We follow a transparent billing policy. This means that every cost, including credit insurance, is invoiced separately.

Why do you apply a debtor evaluation fee in addition to the credit insurance cost?

This is the fee charged by the credit insurance firm with whom we cooperate to evaluate the risk of every debtor. We pass this fee to you without any markup.

Are all debtors evaluated at the same fee?

There are different evaluation fees per market. The debtor evaluation fees in Cyprus are much lower than countries outside of the EU. When you present us with a list of your debtors for whom you seek credit insurance, we shall provide you with a firm quotation.

I have debtors in overseas markets, can they be credit insured?

Of course. The credit insurance company with whom we cooperate covers more than 50 key markets and hundreds of thousands of companies worldwide.

Letter of Credit Discounting

New around here ? Start With the Basics

What is a Letter of Credit?

Letter of Credit (L/C) is a guarantee given by the bank to pay to the seller for the buyer’s obligation. In simple words, bank promises to pay for the goods which buyer has purchased from the seller.

What is a deferred L/C?

A Letter of Credit which will be paid at a future date. In contrast to sight L/Cs which are payable immediately after the documents are accepted, deferred L/Cs are payable at a future date after the documents are accepted by the Issuing bank.

What are the Advantages of L/C Discounting?

The advantages of L/C Discounting for the exporter are better cash flow management as the Exporter receives advance payment of the L/C before the maturity and credit risk protection.

Do you discount any type of L/C?

We discount only Letters of Credit that have been accepted by the Issuing Bank.

Does the L/C need to be confirmed?

We usually require the L/Cs to be confirmed, but we are willing to consider discounting unconfirmed L/Cs on a case-by-case basis and depending on the credit status and financial position of the Issuing Bank.

The L/C is not in euros but in another currency, is this acceptable?

Yes, we deal in all major currencies.

My bank is not comfortable to receive L/Cs from some countries, can you help?

Yes, please consult with our sales team to help you overcome this problem. The only restriction that applies is that we shall not deal with countries, banks, legal entities or persons on the EU Sanctions List.

Debtor Management

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Who will approve a Debtor?

We shall require you to provide us full information on the Debtor. It is up to our Credit and Risk Committee to approve or disapprove a Debtor and assign the funding limit for that particular Debtor.

What is assignment of debt?

A debt assignment is a legal action taken by the person who owns the Invoice to transfer its ownership to a third party, such as Eurivex, by agreement between the Owner (you) and this third party (Eurivex Trade Finance Limited). The debtor has no say in this. However, the debtor must be notified of the assignment of the debt and its obligation to the new creditor, which in this case is Eurivex.

My Debtor objects to the sale of its invoice, can I still discount it with you?

Yes. Based on English law, the debtor has no active role on this matter and therefore it cannot object to its invoices being offered for sale, unless you have signed a contract with your debtor which strictly prohibits such activity, something that you ought to bring to our attention.

How is my Debtor’s credit rating calculated?

The rating is calculated after a careful assessment by the Eurivex Credit and Risk Committee based on your Debtor’s past payment history with you, its financial position as well as information that we collect from Credit Information Agencies and/or Credit Insurance Companies with whom we cooperate.

Do I assign all the invoices for a debtor?

Yes, once you assign a debtor to us, then all invoices must be sent to Eurivex.

When does a Debtor amount become disapproved for funding?

If the Debtor fails to meet its obligations and it has overdue balances more than the agreed maturities, then the invoices pertaining to that Debtor will be disapproved for funding.

If an adverse event affects the creditworthiness of the Debtor, its funding limit may be reduced.

If the Client total balance exceeds the agreed funding facility, then new invoices received will be disapproved for funding.

My bank is not comfortable to receive L/Cs from some countries, can you help?

Yes, please consult with our sales team to help you overcome this problem. The only restriction that applies is that we shall not deal with countries, banks, legal entities or persons on the EU Sanctions List.

Do you request any collateral?

The only collateral is the invoice that is assigned to Eurivex. In contrast to banks, we don’t force shareholders of companies to provide additional personal guarantees or mortgages.

What is the minimum time to commit or terminate this agreement?

Please refer to our standard account opening agreement Terms and Conditions. Usually all your obligations to Eurivex need to be settled before we release or allow for cancellation of the agreement.

How do I follow the status of my account, invoices?

You may log in to Eurivex Agora Online Platform where you can view your account history, the debtors, payment history, funding availability, charges and all other information including the downloading of statement of account and ageing analysis for your records.

Who informs my Debtors that they need to pay you?

If you have chosen the Confidential Invoice Discounting service, then you are responsible to collect the money due from the debtors and deposit the funds in the specified bank account.

Fees and Charges

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What is the Administration charge?

The Administration charge is a percentage fee applied on every invoice assigned to us. Please refer to the account opening agreement Terms and Conditions and our Costs and Charges link available on our web site for additional details.

Do you still apply the Administration charge for disapproved debtors?

Yes. The Administration charge is applied irrespective of whether the invoice is disapproved for funding.

When do you take the Administration charge?

The Administration charge is applied the moment an invoice is assigned.

What is the Discount charge?

The Discount charge is applied for the duration of the funding made available to you. If you presented an invoice for discounting and we paid you 80% of the amount of the invoice, then we shall charge you a rate on an annual basis for the number of days that the amount is outstanding on the amount funded until your Debtor settles the invoice. Please refer to the account opening agreement Terms and Conditions for the exact rate of interest to be applied to your outstanding balance.

Do you apply VAT?

Yes. VAT is applicable for all the fees, i.e. the facility, the administration and the discount charge, except the discount charge on confidential invoice discounting.

How do I pay for the fees?

The charges are applied to your current account.

Who pays for the bank transfer fees?

The transfers to your bank account is made by SEPA or Swift payments and charges apply to the beneficiary.

Request a Call Back or Free Quote

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Call +(357) 22 02 88 30