The partnership and trade relationship among companies change year by year and a need for alternative financing tools increases. One of such financing facilities is factoring. By utilizing factoring services, the Supplier receives invoice payment of the services and products sold on time and Buyer pays its debt to Bank within the terms of contract. So both the Supplier and the Buyer can keep their turnover capital at necessary level and run their business without any financial impediment.
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