Factoring - is a financial service where a business (Supplier) in order to finance its working capital sells its receivables from debtors (Buyers) to a Bank (Factor).
Therefore companies which supply goods or provide services (Suppliers) to any other companies (Buyers) can benefit from Factoring. It can be a good financing solution for companies operating in production, construction, services, trade and other industries.
Benefits of Factoring
• Immediately receiving up to 90% of your credit sales
• Working Capital boost with favorable financing terms
• Committed financial resources and long term payment conditions
• Improved credit control over receivables and payments
• Support of trusted relationship between Supplier and Buyer
• 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