Factoring companies provide three main services. Depending on their needs, companies can benefit from all or either one of these services;

Warranty:
The service of guaranteeing receivables to the seller (customer) in cases where the buyer (debtor) has difficulties making the payment. However, this guarantee does not apply if the goods shipped to the buyer are defective.

Collection:
The seller is provided with receivables follow-up, collection and related reporting services.

Financing:
The service of paying a certain percentage of the assigned receivable amount to the seller, prior to the due date.

• Obtain discounts by making advance purchases from suppliers.
• Ensure steady cash flow.
• Create an alternate source through the financing of receivables from open account sales.
• Ensure growth through company receivables as opposed to bank loans. Decrease your receivables and payables for a more liquid balance sheet.
• Save time and resources by handing over follow-up and collection.
• Receive administrative and legal follow-up support in case of problems with the collection of handed over receivables.
• Providing of consulting services regarding receivables management and collection.
• Buyers are more disciplined regarding payments as a factoring company is involved.
• Risks involved are minimized as an expert institution determines and tracks the credibility of your buyers.
• Competitive power increases through insights on new buyers that have been obtained in advance and the market expands as a result.

Factor: A financial institution that provides factoring services by assignment of receivables.

Seller (Client): The claimant party that signs an agreement with the factor and that benefits from its services.

Buyer (Debtor): The party responsible for the payment of receivables.

Domestic Factoring: Takes place between a seller, buyer and factoring company located in the same country.

International Factoring: Transactions that take place between a seller and a buyer from two different countries and one that is included in the scope of foreign trade. Generally, two factoring companies provide their services using a communications network.

Recourse Factoring (Collection + Financing): Type of factoring where the factoring company does not take on the risk of the buyer having difficulty in completing the payment of its debts, in other words, one where warranty services are not provided. In this case, the factoring company contacts the seller and makes a request for the advance payment amount and factoring costs.

Non-recourse Factoring (Warranty + Collection + Financing): Type of factoring where the factoring company takes on the risk of the buyer having difficulty in completing the payment of its debts, in other words, one where warranty services are provided along with collection and financing. In this case, the factoring company is not entitled to request the advance payment amount and factoring costs from the seller.

Notified Factoring (Warranty + Collection + Financing): Type of factoring where the seller notifies the buyers regarding the assignment of receivables to the factoring company. The buyer completes the payment to the factoring company.

Non-notified Factoring (Warranty + Financing): Type of factoring where the seller does not notify the buyers regarding the assignment of receivables to the factoring company. Collection is completed by the seller. The factoring company only provides warranty and financing services.

•  Strong partnership structure
•  Experienced management staff
•  Qualified human resources
•  Widespread branch network
•  Market experience based on long years
•  Strong system infrastructure
•  Intelligent workflow program in paper-free environment
•  Fast and high quality service
•  Customer specific solutions