Trade Facilitation Programme - Factoring: Training/Advisory
Trade Facilitation Programme - Factoring
Training Courses/Seminars and Advisory Services
Register of qualified experts
Factoring is a progressive banking product which allows an elegant, straight forward trade finance business support and can further promote domestic and international trade.
Currently only a very limited number of banks in the European Bank for Reconstruction and Development ("EBRD" or the "Bank")'s countries of operation are familiar with this type of financing trade finance transactions and most banks do not have the skills or knowledge necessary to introduce this new product and to finance it.
The EBRD intends to establish a register of qualified experts (the "Experts") to be engaged to provide consultancy services to participating banks and non-bank factoring companies. The proposed technical assistance will consist of both training courses/seminars and advisory services which will assist in the dissemination and know-how transfer of factoring as well as providing the participants with basic knowledge and tools for proper utilisation of the financing and otherwise supporting domestic and international trade.
Most of the recipient banks are participating in the EBRD’s Trade Facilitation Programme ("TFP"). The aim of TFP is to promote foreign trade with central and Eastern Europe and the CIS.
For each individual assignment, the Financial Institutions ("FI") team will select an individual consultant (the "Consultant") in accordance with the Bank’s Procurement Policies and Rules.
The objective of the assignments is to fill the gap between the growing demand for this sophisticated trade finance banking product and the limited amount of knowledge or skills currently preventing the banks/financial companies from offering it to their clients.
1. Training Courses/Seminars
In order to meet the objective above, the consultant shall design and deliver one day workshops covering the following topics:
1. Introduce/refresh/up-date factoring basics including its four major functions as well as various factoring structures (such as, amongst others, financing against assignment/sales of accounts receivable, recourse versus non-recourse, reverse factoring, international and domestic factoring, insurable factoring business, client and debtor risk estimation, promotion of factoring to existing and prospective clients, accounting of factoring transactions, drafting standard factoring master agreements, other) supported by case studies.
2. Provide an overview of the factoring industry worldwide.
3. Present and discuss factoring specifics (including among others, legal issues, accounting and structuring of the transactions) supported by case studies to accompany the presentation.
4. Provide an overview of various legal contexts and approaches related to factoring transactions worldwide as well as comparative analysis of advantages and disadvantages of the legislative aspects of factoring.
5. Present and explain various risks associated with factoring including client risk, debtor risk, loss of goods, transfer of the title of ownership of the goods, fraud issues, and other.
6. Present marketing of factoring to clients (as well as sales and promotion of factoring) supported by case studies.
7. Present risk management of factoring operations including suggestions to the structuring of internal approval process.
8. Introduce international factoring (including presenting international factoring associations and international factoring rules and current status of the international factoring supranational legislation (GRIF, UNIDROIT, other)) as well as two-factor-structure cooperation via FCI and IFG.
9. Present perspectives of factoring for the future.
The basic/advanced level training courses/seminars will target trade finance personnel including relationship managers in order to help banks identify the trade finance opportunities immanent to their current business as well as the potential of their clients.
2. Advisory Services
In order to meet the objective above, the Consultant shall deliver factoring consultancy services over a period of up to 170 days at the premises of the entities which will be selected as participants of such projects in the countries of operations of EBRD.
The Consultant will:
1. Help establish and optimise a factoring department and factoring operations as a trade finance product with strategy and policy, processing unit, sales concept and measures, review modus for factoring transactions in risk management, as well as promotion techniques in the banks and companies;
2. Explain and demonstrate different factoring product types (with/without recourse, domestic/international, other) and structures;
3. Design factoring sales promotion strategy and policy as well as internal manuals and guidelines within the local legislation framework and socioeconomic environment, and other relevant conditions;
4. Provide presentations and explanations to the documentary department, the trade finance department, the corporate client department as well as the senior management so as to ensure that all the departments of the participating entities dealing with international and domestic trade finance are aware of the alternatives and advantages which factoring can offer;
5. Identify together with the banks and factoring companies new business opportunities and new client segments so as to increase the volume of international and domestic trade finance activities, and factoring operations in particular; and
6. Streamline and optimise internal procedures and process steering measures in connection with factoring operations, including the application and approval processes and the risk management as well as on-going monitoring of limits and utilisations in connection with the factoring exposure/portfolio.
The particular objectives for each project / country will be discussed and agreed by the EBRD with the management of the selected factors prior to engagement and reconciled in detail before implementation of individual assignment. As each factor might have different needs in connection with the training projects, in addition to the above objectives, the consultant may need to set up certain particular objectives of the advisory services such as industry specific objectives, legal documentation re-drafting, currency risk mitigating measures, and other. The EBRD will agree with the banks and factoring companies the target client profiles and the consultant will adjust the work plan for each bank/factoring company accordingly, prior or during initial phase of each assignment.
Experts should demonstrate relevant qualifications, knowledge and experience in the following areas:
- Excellent expertise as well as demonstrable track record of practical trade finance banking of preferably at least 20 years with factoring industry prime names and international players;
- Exceptional professional hands-on expertise, in-depth theoretical and practical understanding of factoring (banking) operations and products and related legal, ALM (gaps, among other), taxation and financial accounting skills (including country and legislation specific intricacies);
- Proven excellent track record of delivering successful consulting and advisory projects including initiation, designing, delivering, and conclusion (among other, delivering face-to-face personnel training, sales promotion sessions with trainees and external clients, drafting manuals and guidelines, establishing internal framework procedures’ flow, risk management procedures, and related);
- Excellent communication, negotiation, and reporting skills and demonstrable ability to secure commitment of all stakeholders of consultancy projects,
- Negotiation level command of Russian language would be beneficial.
Individual, not corporate services are required. Firms may propose the services of individual experts. Firms should also note that selection of experts will be based on the capabilities and experience of the individuals proposed (and not on the capacity and experience of the firm).
(1) Up to EUR 20,000 for seminars/training courses and (2) between EUR 70,000 and EUR 200,000 for advisory services per individual assignment.
(1) between one and two days and (2) between three and twenty-four months per individual assignment.
For each individual assignment, the FI operation team will select a consultant in accordance with the EBRD’s Procurement Policies and Rules.
Funding for each assignment will be sought from the Bank’s donor funded Technical Cooperation Funds Programme.
No eligibility restrictions apply for registration but shortlisting/selection of the experts for each assignment is subject to the availability of funding from an appropriate donor and may be subject to donor’s eligibility restrictions, if any.
How to register:
Interested firms and individuals wishing to register should complete in English the below mentioned form(s) and e-mail them to Phoebe Ossei: firstname.lastname@example.org.
Please note the following:
All firms and individuals must return the following documents:
• Cover letter/e-mail
• CV in the required format (38KB - DOC)
Failure to submit in the required format may result in rejection of a firm’s or individual's application.
CVs should be detailed and include full descriptions of responsibilities carried out, not just a job title.
Consultants responding to this invitation are asked not to contact the Financial Institutions Team, or the EBRD generally and to restrict their communication initially to the above e-mail addresses.
Consulting firms (proposing individuals) and individuals may express interest in being registered and may be registered at any time. There is no deadline for submission of registration forms. All consultants will be informed whether or not they are included on the register.
Inclusion on the register does not guarantee selection for any individual assignment.
The EBRD reserves the right to modify or withdraw the registration system described above for any reason and without prior notice. Registered firms and individuals will be advised, however, of any such modification or withdrawal and of the system (if any) to be introduced to replace the current procedure.
This notice refers to goods, works, services or consultancy services to be procured through open and competitive tendering for projects financed by the EBRD. Potential tenderers desiring additional information on the procurement in question or the project in general should, unless indicated otherwise, contact the project agency and not the EBRD.