27 March 2006
Prvi faktor Sarajevo
Turning receivables into money
A member of the NLB Group and SID Prvi faktor Ljubljana founded a subsidiary company, Prvi faktor Sarajevo - the 60th member of the NLB Group. Prvi faktor Sarajevo is the first and currently the only specialised company in Bosnia and Herzegovina providing factoring services. As part of the group Prvi faktor Ljubljana, which is a member of the global association Factors Chain International (204 members from over fifty countries) and the international network International Factors Group, which covers 47 countries, the company can also provide support to companies from Bosnia and Herzegovina in their exports to almost any country of the world. The company will be managed by Nedim Rizvanović.
Ernest Ribič, the manager of Prvi faktor Ljubljana, explains: "We are very satisfied we managed to establish a company in Sarajevo and to thereby complete our presence in the large region of South-east Europe. Of course, our ambitions do not end here as we are already planning a further expansion and our next target is Macedonia. Factoring is a modern financial service which eliminates all shortcomings related to credit sales or deferred payment without additional insurance by the buyer, either in the country or abroad, provided at a single location and in the form of a single agreement. We are bringing our prospective clients in these new markets the opportunity to protect themselves against financial non-discipline."
Through factoring, the assignor can receive a payment of up to 90% of the value stated on the invoice in its account immediately upon issuing the invoice. Moreover, it has the opportunity to insure its receivables through factoring, meaning that the factor assumes the full risk of the buyer not paying. The factor takes care of the ongoing, up-to-date and accurate administration and monitoring of assigned receivables and delivers periodical reports on transactions and the balance of receivables, received payments and average defaults, issues reminders, and collects and recovers receivables. This is especially important in international operations where the factor helps the assignor overcome various problems arising from differences in language, legislation, business practices and customs. Recovery methods are always agreed in advance with each individual assignor and adapted to their requirements.
In terms of price and effects, modern factoring has become one of the most efficient and competitive financial services that is being ever more frequently used and established all over the world.
NLB Public Relations
The NLB Group today:
The NLB Group has 60 members in 16 markets, 17 of which are banks, 10 leasing companies, 12 trade finance companies (factoring, forfeiting, export financing), 3 insurance companies, 2 asset-management companies while 16 companies are engaged in other activities. The NLB Group services over three million clients. With over EUR 12 billion of total assets and 1,500 correspondence relations in 140 countries the NLB Group is the leading Slovenian international financial group. The Group employs 8,159 staff. International credit ratings that allow the NLB Group access to international financing sources on favourable terms are: Moody's A2, Fitch A- and Capital Intelligence A-.