Factoring Services

QNB Finansbank

Factoring Services

Factoring services are categorized under three main headings: receivable management, collection and financing. Factoring company undertakes the risk of non-payment of trade receivables with these services, follows the collection transactions and converts the receivables into cash before maturity. In this way, with the resource provided, businesses reach a regular cash flow. Factoring services can be used separately or together.

Factoring services: Receivables Management

Factoring assumes the risk of the buyer firms failing to pay the debt and guarantees the receivables arising from the sales of the seller firm. Thus, the factoring company reduces the commercial risk of businesses.

Collection

Factoring company assumes the receivables of the vendors and ensures their sustainable and safe growth. Companies get many advantages thanks to this function. One of his most important gains is time. Firms that save time find more resource opportunities and more time to devote to business activities. Collection transactions are carried out by the factoring firm.

Finance

Sellers can use a certain percentage of their forwarded receivables as a prepayment before their due dates. In this way, the transformation of receivables into cash accelerates and the cash required for the growth of the business is provided without the need for external resources. Factoring services provide capital to businesses, increasing their commercial power.

Who Can Benefit From Factoring Services?

All companies dealing with domestic or international postpaid trade can benefit from factoring services without any balance sheet size or turnover criteria. Many businesses that want to expand their business, do not want to wait for bank loans for this, can benefit from these advantages of factoring services for their cash needs

What are the Costs of Factoring Services?

Factoring services have two types of costs. These costs are interest, commission and charges. The cost of factoring varies according to the maturity of the transferred receivables and the transaction volume

Which Advantages Provide to Benefiting from Factoring Services?

Provides financing support by meeting the cash needs of postpaid and check receivables without waiting to expire.

It increases the competitive power in the market with the maturity option.

It increases the ratio of balance sheet to liquid.

Keeps buyers' payments under control by protecting against large and powerful companies.

A more fluid financial structure is provided by regulating the cash flow.

What are the Types of Factoring Services?

If you intend to use factoring services, you can learn about the types of factoring services to find out which factoring service is more suitable for you.

Recourse Reserved Factoring

It is the factoring type in which the risks remain with the seller. Factoring firm only mediates collection services.

Irrevocable Recourse Factoring

It is the factoring type in which the risks remain with the seller. Factoring firm only mediates collection services

Collection Method

It is the system that is supported only by collecting from the buyer without financial support. Prepayments such as advance payments are not made in this type of contract. The debt is paid by collecting it from the buyer on the due date.

Factoring on Payment Term

In this factoring type, transactions are made only over the amount provided at maturity. The seller receives the payment by waiting for the due date to collect the receivable. Prior to this, no advance payment is given to the seller company.

Invoice Discount Method

It is the model that the factoring firm provides only financial support. The risk of not paying the debt of the buyer belongs to the seller in this factoring type. Here, the collection process is carried out by the seller.

Implicit Factoring

In this factoring type, partial insurance is applied on receivables. The guarantee is only valid for a certain share. There is no guarantee of payment for all receivables. Payment guarantee is given only for the share valid in the contract. There is no guarantee for the remaining amount.