TURKISH   |   English
    ABOUT VAKIF FACTORING
Which adopts the principle of being your "solution partner" with its strong capital structure and dynamic staff, is also a full member of FCI (Factors Chain Intl.) and Financial Institutions Union.

    MONEY MARKETS
12-11-2019
  EURO USD
  Buying 63542 57624
  Sales 63796 57855
 

HOW DOES FACTORING WORK?


The seller firm willing to take advantage of the domestic factoring service applies to the factoring company and provides the necessary information and documents. The factoring company which handles the necessary examination and studies in the light of all such information and documents, makes an offer. A factoring contract is signed by and between the parties which agree on conditions such as factoring commission rate, preliminary payment ration and finance interest included in such offer.

Along with the goods, the Seller sends the written notification that the receivable was assigned to Vakıf Factoring and the invoice containing the assignment expression to the Purchaser, and a copy of the dispatch list to Vakıf Factoring. By virtue of such assigned invoices, preliminary payment is made within the framework of the conditions agreed upon in the contract. The invoice amount is collected from the purchaser at due time, and the relevant amount is paid to the seller having reduced the factoring commission, and the preliminary payment amount, if any, and the finance interest.

There are four parties in foreign factoring transactions. These are exporter, factoring in the country of the exporter (export factor), importer and the factoring company in the country of the importer (import factor).

The exporter firm conveys the information on the importer firm to Vakıf Factoring. Vakıf Factoring notifies the information on the purchaser to the correspondent in the country of the importer (import factor). The correspondent who conducts necessary studies in relation with the credibility of the importer allocates a limit for the purchaser, and notifies the collection conditions to Vakıf Factoring. Such information is conveyed to the exporter firm, and if an agreement is reached on the employee conditions, factoring contract and the documents demanded by the correspondent factoring are signed. The exporter notifies its receivable to the correspondent factoring, and the assignment note to the importer when sending the commodities and the invoice to the importer. If the exporter demands finance, then a certain ratio of the invoice is paid to the exporter by Vakıf Factoring as preliminary payment. The correspondent sends the amount of the invoice to Vakıf Factoring when collected from the importer. If preliminary payment was made, deductions from the invoice amount are reduced and the remaining amount is paid to the exporter.

In the event that the purchaser undergoes financial troubles, the correspondent factor realizes payment on the 90th day of maturity completing the invoice amount to 100%.

 

FIU and FCI Full Member Copyright © 2015 Vakif Faktoring A.Ş.