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.
2. What are advantages of Factoring transaction?
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.
3. Who can benefit from Factoring transaction?
All companies, producing or selling domestic goods or service, can benefit from factoring transactions.
4. How do I have Factoring made?
Firms, requesting to convert their term receivables into cash, should contact with Tek Faktoring specialist personnel from telephone no: 0212 292 80 80. Factoring transactions start by acceptance of documents related to factoring transaction by Tek Faktoring and signing General Factoring Agreement mutually.
5. What are purpose and activity fields of Tek Faktoring?
Company was founded for buying, selling, acquiring ownership or transfer to others in terms of property of any and all sorts of invoiced receivables caused as well as to be caused by buying and selling goods and services inland and abroad, providing guarantee in regard to collection of such receivable values, to collect such receivables, to cause financing by making preliminary payment to sellers in return of such receivable values and provide accounting services to companies that acquire their receivable values in terms of accounting further to terms and conditions called for by respective bylaws as well as rules and regulations called for by international financing as stated in Article 3 of Company Articles of Association. Company displays following activities in order to fulfill the businesses, stated in its purpose and aim:
a. To provide for organization to buy, sell, acquire ownership and transfer in terms of property any and all sorts of invoiced term receivables related to buying and selling goods and services inland and abroad in compliance with relevant regulation and international factoring laws and rules,
b. To establish organization of necessary accounting that would be needed to keep records of companies that transfer their receivables with or without guarantee to collect them,
c. To provide, if necessary credit or funds, termed either, short, medium and long from banks and other finance corporations inland and abroad in order to provide pre-financing to sellers for values receivable that are taken over,
d. To provide consulting service to buyers and sellers inland and abroad in regard of sale contracts to be issued for buying and selling goods and services, and to provide intelligence service to parties about one-another,
e. To involve in corresponding relations with factoring corporations located inland and abroad, to provide intermediary service to such corporations in their works concerned domestic and foreign contacts, to transfer invoiced receivables to such corporations or acquire invoiced receivables from such corporations,
f. To become member to factoring associations, national and international,
g. To provide for training to staff members inland and abroad, who shall be employed in organization and services established for Company purpose and aim requirements, to arrange course, seminar and respective training programs for this purpose,
h. To acquire and to rent all sorts of movable and immovable goods from sources inland and abroad within scope of Purpose and Aim of company and to sell or to hire out them partially or completely inland and abroad provided that it is not made in trade form,
i. acquire and retain ownership rights thereon of securities and precious documents on condition that activity shall not involve any stock exchange bankers and intermediary services,
j. To acquire property rights in kind over assets, movable and immovable for the purpose of fulfillment of Company purpose and aim and to pledge and to mortgage, to give or to release them,
k. To issue debentures, finance bond, tangible value based on property, certificate to participate in profit, share certificate and exchangeable security, preferred shares for participation, partnership to profit and loss certificate as well as any other forms of securities foreseen through bylaws provided however no intermediary service is given in such transactions,
l. To give advance payment, serve as guarantor or give acceptance to guarantor services offered in concern to any activity within scope of purpose and aim,
m. To collaborate with real and legal entities from inland and abroad to establish new company, to corporate into already existing in regard of Company purpose and aim, to buy, to transfer, to sell, to show as articles of guarantee, to benefit and to have others benefit from usufruct of share certificates and debenture notes issued by legal entities under scope of private as well as public legislation, provided however no intermediary service is given in such transactions,
n. To make all kinds of agreements under scope of Company purpose and Aim, to contact with private and public establishments and authorities for this purpose, to conclude necessary agreements and contracts,
o. To involve in activities comprising commissioning, agency, dealership and similar intermediary services in regard of scope of purpose and aim on national as well as international levels and to having others given task with these.
In addition to the above, in case it is attempted to get involved in other works, which shall be deemed useful and necessary for Company, case shall be presented for approval of General Assembly upon offer of Board of Directors and after result is obtained in this way, company may get involved in any other scope of work beyond the above. However, in order to be able to apply such process, which is in the nature of articles of association, it should be applied to permission of Banking Regulation and Supervision Agency.
6. What is the Profit Distribution Policy of Tek Faktoring?
After reducing the amounts that the company is obliged to pay such as general expenses of the company and various depreciation values from the incomes, determined at the end of account period, the rest amount constitutes the net profit as stated in Article 29 of Articles of Association. Net profit distribution is made according to below order and principles.
a)Legal reserve fund in the rate of 5 % is allocated.
b)Equivalent amount is allocated for corporation tax, which is required to be paid by company and other taxes and financial liabilities.
c)An amount in the rate of 5 % of paid capital is distributed as first dividend share.
d)It is determined by General Board whether any amount from the rest of the profit shall be distributed as second dividend share or not and the amount if it shall be distributed.
e)If General Board deems appropriate to pay any amount from the profit to members of the Board of Directors, managing directors, officers and employees, it appoints its rate.
f)Provision of Turkish Trade Code, Article no: 466/3 is reserved.
Form and date of distribution of annual profit is determined by General Board upon offer of Board of Directors. Any profits, which are distributed in compliance with provisions of these articles of association, cannot be taken back.
Provisions of Turkish Trade Code, Articles 466 and 467 are applied on reserve funds allocated by the Company.
7. How can I access Annual Activity Report of Tek Faktoring?
You can access from Annual Activity Reports Section under Main Title of Institutional Management in our web site.
