A client opting for different combinations of financing, receivables management & administration and risk coverage contacts a factoring company. At this phase, factoring company needs as much information about the client and its trade as possible.
Faktoring company designs best fitting commercial finance product to meet requirements of the client and discuss and agrees the terms and conditions with it.
Factoring agreement is signed. Factoring company gives services to client as agreed in the offering phase.
Financing and Collection
The client will have access to credit for the receivables subject to factoring transactions. Factoring company will make collection of receivables when they are due.
If the agreed factoring service includes guarantee component of factoring facilities, then factoring company will make payment under guarantee in case the buyer fails to pay receivables assigned to factoring company.
Receivables arising from local and/or international trade may both embraced by factoring market.