Domestic Factoring

QNB Finansbank

Domestic Factoring

Domestic factoring is a factoring transaction between the buyer and seller firm in the same country. The seller company can guarantee its trade by transferring its postpaid term receivables arising or to be born from the sale of its goods and services to the factoring company.

Domestic Factoring Transactions

Advance Discount

It is the determination of the interest and commission according to the average maturity of the receivables with a certain maturity.

Payment is made at the beginning of the transaction.

Monthly bills are issued.

Spot transaction

It is the application of fixed factoring interest and commission to the receivables of which maturity is determined.

Principal, interest and fees are collected at the end of maturity.

Collections are deducted from the principal.

Invoices are issued according to maturity periods.

Variable Interest Rate Transaction

It is the application of variable factoring and commission to the receivables whose maturity is determined.

Interest fee is determined according to market conditions.

The collections are deducted from the principal balance.

The transaction is closed on the date requested by the customer.

At the end of the term, principal, interest and fees are collected at the end of the transaction.

Monthly bills are issued.

Operation of Domestic Factoring

In domestic factoring, the seller firm wishing to benefit from the factoring service transfers its invoiced receivables arising or will arise from its goods and services to the factoring company. Factoring firm makes its offer to the seller after performing the necessary examinations. In this offer, it specifies the services it will provide, the commission and fees it will receive. After the factoring agreement is signed between the factoring company and the seller firm, the seller company sends a copy of the documents that encourage their receivables to the factoring company. Factoring firm makes an advance payment to the seller firm. When the due date in the contract arrives, the invoice amount is collected from the buyer and the remaining payment is made to the seller.