What are the Domestic Factoring Transaction Types?
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2 min read
11/7/2022
10/10/2022
Cash Discount
It is the determination of the interest and commission fee according to the average maturity period of the invoiced receivables with a certain maturity, and the payment to the company at the time of the transaction. Its most basic feature is; During the factoring process, interest, commission and other deductions and legal deductions are collected in advance.
Spot trading
It is a prepayment transaction used with a fixed term, factoring interest and commission fee. Basic features; By keeping a certain margin, the assigned amount is used as financing to the company. Principal, interest and fees are collected at maturity. Collections are deducted from the principal balance. Invoices are issued according to the due dates.
Variable Rate Transaction
It is a factoring transaction that is made freely within the specified term to meet the short-term cash need. The main features of the transaction type; Variable factoring interest and commission are applied to the determined receivables maturity. Interest fee is determined according to market conditions. Collections are deducted from the principal balance. The transaction is closed on the date requested by the customer. Principal, interest and fees are collected at maturity. Invoices are issued monthly.