|
FACTORING IS:
1. Funding of your deliveries.
2. Cover of your risks:
- Liquidity - risks of untimely payment for delivery by the buyers;
- interest - risks of sharp change of market cost of funds;
- foreign exchange - risks of currency rate during the period of delivery payment deferral.
3. Administrative management of receivables:
- daily control over condition of receivables and timely payment for deliveries by the buyers;
- record keeping of all settlements under contracts signed with the buyers;
- informing he buyers on term of payment for goods delivered;
- provision of different reports on receivables, etc.
WORK SCHEME OF FACTORING WITH RECOURSE
1. The Seller (Продавец) delivers goods to the Buyer (покупателю).
2. The Buyer (Покупатель) provides settlement documents to the Seller (продавцу) that confirm the fact of goods delivery (invoices, transport bills, etc.)
3. The Seller (Продавец) provides settlement documents to the bank (assigns the right of money claim to the bank)
4. Bank transfers to the Seller (продавцу) an advance up to 95% of settlement document value.
5. Buyer (Покупатель) pays for goods to the account of the bank.
6. bank transfers to the seller (продавцу ) remaining part of settlement document value.
7. If the Buyer (покупатель) does not pay timely for received goods, the Seller (продавец) repays debt under advance and interest accrued at expense of its own funds.
FACTORING WILL HELP YOUR ENTERPRISE
- to get additional collateral-free funding;
- to speed up turnover of funds and increase the profit of enterprise;
- to increase sales volumes in several times;
- to expand the share of the enterprise on the market due to:
- provision of more beneficial terms of payment for goods;
- expansion of goods assortment;
- increase of number of buyers.
- To reduce risks connected with payment delay;
- To save on additional job places.
|
Factoring