Reverse Factoring - is a financial service where a Bank (Factor) pays the payables of business clients (Buyers) on behalf of them to their debt holders (Suppliers).
Therefore companies which buy goods or receive services (Buyers) from any other companies (Suppliers) can benefit from Factoring. It can be a good financing solution for companies operating in production, construction, services, trade and other industries.
Benefits of Reverse Factoring
• Maintenance of trusted relations with supplier
• Long term payment terms availability for goods and services supplied
• Working capital optimization and favorable short term financing
• Means of obtaining raw material for production and goods for sale in shorter time and with favorable terms from your suppliers and keeping stocks reserved
• Agreement term - upon individual agreement
• Financing limit - upon individual agreement
• Currency of financing - for operations within Azerbaijan Republic in AZN, for overseas operations in currency of the agreement between parties
• Interest rates and commissions - upon individual agreement
• Official agreement between Seller (Supplier) and Buyer (Debtor)
• Prove of commercial relations between Seller (Supplier) and Buyer (Debtor) for a specific period of time
• Act of acceptance for the goods and services between Seller (Supplier) and Buyer (Debtor)
• All invoices and other supporting evidence documents required by agreement should be delivered to the Bank