Factoring - a new type of funding for providers experiencing temporary financial difficulties as a result of delays in repayment of debt buyers and the limited sources available to them credit.
How it works:
- The supplier delivers the goods (services) to the Buyer in accordance with the supply agreement
- Supplier forward to the Bank all documents proving that the delivery of goods
- Bank pays up to 80% of the debt buyer on account of the Supplier, with a maximum term of up to 6 months at 15% per annum
- After buyers payment for the goods, the Bank retains the amount paid plus interest and fees from the account of the supplier
Advantages of factoring:
- Supplier receives money without waiting for payment from the buyer
- There is no shortage of working capital
- Sales growth by providing favorable conditions for cooperation buyers (deferred payment)
Factoring allows you to concentrate on sales and gain a significant competitive advantage!