Participants in Classic Factoring are the Assignor of claims / Client (seller of goods and services), Factoring company (factor), and Debtor (buyer of goods and services).
Traditional factoring with the right of recourse implies that the client is responsible to the factor in case of non-payment of claims on the due date of the claim, meaning that the factor has the right of recourse towards the client. In other words, the factor does not assume the entire risk of the business, that is, the collection of receivables. When contracting this type of factoring, the factor has the right to demand settlement from the debtor, the assignor, or from both participants in the transaction at the same time, all within the limits of the responsibility of the debtor and the assignor, unless otherwise agreed.
Reverse or Supplier factoring is a variation of regular factoring, which is agreed between the factor and the debtor under a contract for the sale of goods or the provision of services. According to this contract, the factor undertakes the obligation to pay the creditors and has the right to collect from the debtor by the term established in the contract for the sale of goods or the provision of services. You can agree on the payment dynamics of your obligations according to the protocol in another way that is more suitable for your company's business. The main difference compared to traditional factoring is that in this case, the debtor must obtain approval from the creditor.
By using reverse factoring, you realize benefits both for yourself and for your suppliers. Due to the very short payment term, you can get more favorable terms of purchase, while your supplier quickly gets working capital and thus improves its liquidity.
International factoring can be defined as the purchase and sale of an existing non-maturity or future short-term claim, which arose on the basis of a contract for the sale of goods or the provision of services in foreign trade affairs. International factoring is a service that is primarily aimed at medium and large companies that deal with exports and that have been cooperating with foreign buyers for some time.
Bills of exchange have long been used as a means of payment or security and are often used in business. It is formal and must meet all the requirements prescribed by law to be valid. Also, it is important to note that it is an unconditionally receivable security.
Bill discounting can be defined as a financial service where you give your bill at a discount, and you receive a monetary amount on your account that is reduced by the amount of the agreed discount. By using discount bills, you get free funds faster on the one hand, while on the other hand, you can offer your buyers longer payment terms.
Our services include traditional and reverse factoring, as well as international factoring, and discounting of valued promissory notes, checks and factoring of future receivables.
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