Process

A supplier becomes a customer of ETFL following careful evaluation and requests specific limits for its clients to whom it intends to sell goods/services on credit.

ETFL secures limits from Euler Hermes on the buyers (debtors). When a supplier issues a credit invoice to its approved buyers, it then assigns the invoice to ETFL against which ETFL provides 85% immediate funding to the supplier. On maturity, the debtor needs to pay the full invoice amount to ETFL. If the debtor fails to settle the invoice, ETFL submits a claim with Euler Hermes and secures 90% of the invoice value. Since ETFL gives only 80% funding to the supplier, its risk is fully covered.

Once the trade finance facility is provided, ETFL issues bonds with 6 months maturity and offers investors the opportunity to invest and participate in the return generated from its trade finance activities.

The ETFC bonds are identified with ISIN CY0149252112.

In the case of the “Recourse” Bonds, ETFL Credit and Risk Committee grants the credit limit after careful evaluation of the Supplier and its debtor diversification, taking also into account the financial strength, gearing and other financial ratios of the supplier.

After the limits are approved, the supplier invoices its clients on credit and assigns the invoices to ETFL for discounting.

If one or more of the debtors fail to settle their obligations to ETFL, the uncollected amounts are deducted from the available balance of the supplier pertaining to other debtors. This explains the right of recourse on the supplier. If the supplier does not introduce new invoices, ETFL will collect the outstanding balance from the rest of the debtors and claim the remaining balance from the supplier, including taking legal action if the outstanding is not recovered. If the supplier has become insolvent, in that case ETFL would be treated as a creditor.

The ETFR bonds are identified with ISIN CY0149252113.

Company

  • 18 Kyriacou Matsi Ave.

  • Victory Tower, 1 st floor

  • Nicosia 1082, Cyprus

Subscribe to our latest news

Disclaimer & Regulatory information
Eurivex Ltd is a Cyprus Investment Firm, authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC), License number 114/10.
Company Reg. HE 255430. Headquartered and based in Cyprus, member of EU.

Risk warning: Investing in financial instruments and other derivatives involves a high degree of risk and may not be suitable to all investors. Trading in such financial instruments can result in both an increase and decrease in capital. If you invest through Eurivex Ltd, the value of investments may go down and your capital will be at risk. Eurivex Ltd operates a secondary market but there is no guarantee that all buy/sell orders will be completed at the desired prices and there is a risk that an order may not be completed in the Eurivex secondary market if there is no matching order. There is no guarantee that you will be able to exit early by selling your investment. Eurivex Ltd does not provide investment, tax or legal advice. If you are unsure about the suitability of an investment, you should speak to a financial adviser. Please refer to our Risk Warning available on our web site for further information.