Factoring is a financial product, in which financing, guaranty and collection services are presented through taking over receivables, arisen or to be arisen from goods and service sales of firms based on term, invoice or a certificate, superseding the invoice, by factoring companies
Companies transfer term receivables to Factoring companies and convert them into cash, they can grow their businesses quickly and in a controlled manner with a continuous and uninterrupted cash flow, they can convert their potentials into performance.
- You can purchase your raw materials with the financing, to be provided by Factoring and you can provide important discounts. This case and similar cases shall decrease your production cost as well as they shall affect profitability of your enterprise positively.
- Your receivables, stocks and commercial debts decrease thanks to factoring; circulating capital, which shall be able to be created by your enterprise, increases. Your Balance becomes more liquid.
- Financing source, which you obtain through factoring, provides you to offer more appropriate sale conditions to your customers. Your competition power increases, business volume grows.
- Factoring provides you to obtain additional revenues by creating time sale opportunity to your customers.
- You follow financial case of your purchasers currently through debtor information to be provided by Factoring; you direct your sales to the purchasers, whose payment power are better according to reliable information results; you improve quality of your customer portfolio.
- You avoid thinking receivable collection and your credit risk. A healthy cash flow enables you to make future and efficient business plans.
- Following load in your accounting decreases, your managerial expenses reduce
