Services
Domestic Factoring
Domestic factoring is a financial transaction where the domestic factor purchases non-matured, short-term receivables from domestic debtors, typically with recourse.
Domestic factoring is suitable for companies in manufacturing and the service sector, as well as domestic companies which distribute their products on delayed payment.
Export Factoring
The Export Factor purchases invoices from its client (exporter) to its foreign buyers (importers) and pays 70-90 % in advance based on the buyer risk coverage and collection service provided by the Import Factor. Upon receiving the buyer’s payment, the Import Factor immediately remits the full payment to the account of the Export Factor. If the buyer is unable to pay and the invoice is not claimed or disputed, the Import Factor is obliged to pay under approval 90 days after due date of the invoice.
Import Factoring
A service rendered by the Import Factor who provides buyer risk coverage to 100% within approved revolving credit limits and collection service to the Export Factor. The Export Factor assigns the invoices of its clients to the Import Factor who becomes the legal owner of the receivables.
Factoring without Recourse
The Import Factor covers the risk of bad debts or insolvency of buyers, provided that no valid disputes related to the receivables have been raised. The Import Factors provides credit investigation and credit protection, collection, litigation and ledger management.
Factoring with Recourse
The Import Factor covers the risk of bad debts or insolvency of buyers. The seller (exporter) and its Export Factor agree that the seller shall re-purchase the receivables (if an advance payment has been made) for which the Import Factor was not able to collect the payments. The Import Factor provides ledger management and collections, but no debtor risk coverage. Litigation can be done by the Import Factor, but the Export Factor/exporter must bear all costs related to legal action. As part of collection-only the Export Factor can ask the Import Factor to perform invoice verifications.
Supply Chain Finance
Supply Chain Finance (SCF) is a set of liquidity solutions and practices for optimizing the management of working capital and liquidity tied up in the supply linear process and their servicing.
SCF solutions are a set of comprehensive cash flow and liquidity-structured products; factoring – known as receivables finance and reverse factoring – known as payables finance.
Factoring with Credit Insurance
Factoring does not usually cover the risk of non-payment or insolvency of the receivables. The insurer takes on the risk of bad debts or insolvent buyers, only in the cases where no valid disputes have been raised. The insurer provides credit investigation and credit protection, collection and court proceedings.
