Eurivex launches invoice financing service to assist SMEs with liquidity issues
Deteriorating funding conditions for small to mediumsized enterprises (SMEs) in Cyprus have become a key obstacle to growth as companies struggle to find access to new finance with bank credit approvals at their lowest.
This has prompted Eurivex, a local financial services company, to launch a trade finance subsidiary that offers a number of advantages to clients in need of funding.
The main results of the 19th round of the Survey on the Access to Finance of Enterprises (SAFE), conducted by the European Central Bank shows that six out of ten Cyprus SMEs have difficulty in accessing new financing.
The lack of knowledgeable bank staff, tightening rules, “hidden” fees, the requirement to post additional collateral in the form of personal guarantees and mortgages, as well as long delays in credit approvals, were cited as factors hindering SME access to new capital.
Eurivex Trade Finance Limited (www.eurivexfinance.com ), a 100% subsidiary of Eurivex Ltd, a Cyprus Investment Firm regulated by CySEC, is addressing this problem by offering alternative working capital funding solutions for local companies.
“Our decision to provide alternative funding solutions for Cyprus companies has come in response to wide complaints from SMEs regarding their dealings with commercial banks,” said Shavasb Bohdjalian, Manager of Eurivex Trade Finance.
“Simply put, we buy company invoices for immediate cash at very attractive terms,” explained Athos Kyranides, Head of Trade Finance operations.
Eurivex Trade Finance offers three primary services: Invoice Discounting, confidential or disclosed; Factoring with or without recourse; and, import and export finance. The main advantages of the new Eurivex services are: - Increase sales by providing credit to customers
- No extra collateral needed, as the financed invoices are the only collateral
- Experienced staff who understand trade finance and factoring and are in a position to provide solutions
- Secure new business to access markets which Cyprus banks are not servicing
- Credit limits approved procedures
- Fully automated systems, as clients can use the company’s award-winning platform to upload invoices and request immediate cash
- Ideal for sales ledger and debtor management including on-line access to customer reports, statement of accounts,
flexible assigning limits and more;
- 24/7 access by mobile or desktop
- Competitive and transparent pricing, as hidden costs are eliminated
- Credit Insurance provided against debtor default through the firm’s association with the world’s largest credit insurance provider
A company may subscribe to the service by providing the latest audited financial results, management accounts, debtors ageing analysis and the credit terms it gives to its clients. Eurivex will undertake a debtor’s evaluation and after the approval of limits, advance up to 85% of the invoice value. Once the invoice is paid, the remaining 15% is provided to the business, minus the agreed fees.