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Services

Factoring is the purchase of short-term receivables and represents a form of post-sale finance for Sellers/Exporters selling on Open Account terms.

Services offer Finance, Credit Management and Credit Protection.

• Finance Service: can make funds available to the seller up to 80% of the value of his eligible invoices. The Factor will follow up with the buyers for payment and collect them on the due date.
• Credit Management Service: can help the seller to collect invoices by providing a professional sales ledger management and collections control function, saving the seller's time spent on such activities.
• Credit Protection Service: provides protection for the business from the effects of a bad debt, leaving the seller to focus on running the business and meeting the demands of the customers.

Types of Factoring

There are two types of Factoring– Domestic and International:

• Domestic Factoring is also known as Accounts Receivable Financing or Invoice Discounting and, as the name implies, relates to commercial transactions between two parties located in the same country.
• International Factoring allows an exporter to offer Open Account terms and at the same time minimize the commercial risk of non-payment. Facilities offered to the Exporter are finance of short-term trade receivables and conversion of a receivable into immediate cash.