Forfaiting and Factoring
Temenos Product Overview
2
Forfaiting and Factoring
Flexible factoring efficiency for dealer and distributor financing
R
unning a business has never been more challenging for corporates.
To survive corporates must remain liquid, reduce the high cost of
capital and in turn increase profit. The importance in ensuring the
smooth flow of cash and meet working capital needs has never
been greater. To support this corporates expect the right forfaiting and
factoring solution from their bank.
Building upon our award winning core-banking solution T24 for
Corporate Banks, Temenos have now developed a powerful sales
tool for banks to support their corporate clients, which assists in
creating positive cashflows for the corporate and therefore reduces
risk; Forfaiting and Factoring. The advanced rule based solution allows
bank to lend to corporates based on their cashflows – reducing risk
– as well as offers corporates the service of giving accurate status of
their collections. In essence, Our Forfaiting and Factoring solution
allows the Exporter to simultaneously be fully protected against
interest and/or currency rates moving unfavorably during the credit
period, however, this new solution offers so much more.
Greater efficiency through automatic upload of invoice
Temenos’ Forfaiting and Factoring solution has been designed to
reduce the previously cumbersome process of manually processing
invoices, sometimes in high volume, to action them. Greatly reducing
time and the associated workload, the solution now allows the
automatic upload of invoices and batching through an enhanced
module in T24.
Analysis can be easily undertaken as the details of the invoices
which are generally available at a corporate in multiple formats,
can be uploaded into a spread sheet or other agreed format and
automatically into T24. The Forfaiting and Factoring application
automates a high proportion of the invoice management with inbuilt
monitoring functionality supporting limit checks and a rich set of
screens and reports for easy management of invoices. This not only
results in greater cost efficiencies but also reduces the chance of
errors occurring at these stages.
Increased control to update records and product type
Forfaiting and Factoring has multi-dimensional risk control which
allows you to define your risk against multiple parties like the buyer,
seller, insurer etc. It allows conditions to be defined for updating the
Product Type based on the default conditions or customer specific
conditions. Whilst, duplicate checks against upload history and status
are also available enabling a full understanding of the invoice to be
established where required. In addition, flexibility is ensured through
conditions that can be defined for updating the Product Type based
on default or customer specific requirements. Also helps corporates
monitor risks against another corporate. This translates into greater
customer service by automating much of the process, from how a
batch is created, what products and services are to your client, to the
detailed processing thereof.
Benefits to banks
• Control through agility: rule based condition and data driven
solution enables robust real-time changes to react instantly
Benefits to corporates
• Up to 100% financing: risk appetite determinable with or
without recourse
• Enhanced STP: automatic invoice and batching upload, product
assignment, margin processing and standard instruction processing
• Improve cash flow: receivables become current cash in-flow,
enabling exporters to improve financial status and liquidation
ability to increase fund raising capability
• Enhanced customer service: an extended product range
enabling corporates to gain 100% finance
• Increased revenue: through fee based income, plus flexible
repayment options and invoices, refinancing or partial discounting
• Greater cost efficiencies: lower credit administration and credit
follow up
• A complete understanding: a full customer view inc. fund
receivables, payable, account statements and limit details, and
all trade related data
• Outstanding customer service: built-in risk control through
duplicate checks
• Access comprehensive features: tool set provides multi
parameter based options to enhance usability of the product
• A true picture: real-time interest pricing at time of invoice acceptance
• Advanced monitoring: allowing corporates to define limits
against each other to understand their exposure
• A tailored approach: allowing your bank to define limits against
a particular buyer or seller
• Reduce administration costs: full management of receivables
for exporters, greatly reducing the relative costs
• Reduce risk: through effective control of forward position
hedging
• Increase trade opportunity: the export is able to grant credit to
his buyers freely, and thus, be more competitive in the market
Temenos Product Overview
3
Temenos Forfaiting and Factoring: efficiency through automation
Customer on boarding:
Limits and authencity
Validate:
Buyer and Seller Limits
Relationship Limits
AML
Relation Limit
Relation Limit
Seller
Limit
Relation Limit
Relation Limit
Buyer
Buyer
/
Seller
Buyer
Limit
Limit
Limit
Relation Limit
Buyer
Limit
Relation Limit
Buyer
Limit
Relation Limit
Buyer
Limit
Temenos Headquarters SA
2 Rue de l’Ecole-de-Chimie
CH-1205 Geneva
Switzerland
Tel: +41 22 708 1150
Fax: +41 22 708 1160
www.temenos.com
TEMENOS™, TEMENOS ™, TEMENOS T24™ and
Temenos Headquarters SA
™ are registered trademarks of
©2014 Temenos Headquarters SA - all rights reserved.
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