Italy’s BFF Banking Group is looking to expand its factoring services to public administration suppliers in Greece, eyeing more business from companies keen to shed state receivables, executives said on Tuesday.
BFF Banking Group set foot in Greece in 2017 as part of its expansion in Europe and has so far grown its business to 65 million euros ($71.64 million). Its clients are mainly suppliers to public hospitals and municipalities.
Factoring is a type of debtor finance where a business sells its receivables or invoices to a third party at a discount. Firms factor their receivable assets to meet cash needs.
The Greek state is notorious in delaying payments to suppliers and has been pressed by its official lenders that financed its bailouts to clear the backlog.
BFF offers factoring without recourse, meaning that if it fails to collect from the state bodies it does not revert to the client to get its money back. [Reuters]