• Accounts Receivable Notification Form

A document listing the receivables (invoices) assigned and cancelled under the factoring agreement.

• Notified Factoring

A type of factoring where the seller notifies how the factoring transactions are conducted for receivables arising from deferred sales. In this case, the debtor company pays the invoice amounts through factoring.

• Unnotified Factoring

A type of factoring where the seller does not notify that factoring transactions are not being conducted for receivables arising from deferred sales. In this case, the seller company collects the invoices itself and pays for the factoring itself.

• Factoring

A financial instrument in which receivables arising from or to arise from the sale of goods or services are assigned, providing the seller company with at least one of the guarantee, collection, and/or financing services.

• Factoring Agreement

A definable contract signed between the customer and the factor, outlining the terms and legal framework of the factoring transactions.

• Interest

The cost incurred when using financing services. It is determined according to the type of transaction and the conditions of the day.

• Financing

It is a request for prepayment of term receivables before their due date (to the seller company).

•Guarantee

This is a guarantee provided against the possibility of the buyer company experiencing payment difficulties; the factoring company assumes the risk of the debtor's non-payment.

• Irrevocable Factoring

This is where the factoring company assumes the risk of non-payment of the receivable. If the factoring company cannot collect from the debtor, it cannot reclaim the advance payment it has made from the seller.

• Export Factoring

This is a factoring transaction where sales made by companies based in Turkey to foreign countries are paid to the seller before their due dates. Depending on the buyer's country, a guarantee service is also provided in addition to financing if requested by the exporter.

• Transaction Fees

These include expenses such as EFT, wire transfer, check/bill of exchange, and file fees.

• Import Factoring

This is a type of financing where the financing of goods/services purchased from abroad by companies in Turkey is provided by a factoring company.

Recourse Factoring

This is a type of factoring where the factoring company does not assume the risk of non-payment of the receivable. In the event of non-payment, the factoring company has the right to seek recourse from the seller and reclaim the advance payment made.

• Commission

This is a cost calculated on the assigned receivables and varies according to the transaction volume and the maturity of the receivable.

• Limit Approval Notification

A notification made by the factoring company to the customer, within the framework of the factoring agreement, for the purpose of operating the factoring guarantee provisions, containing the guarantee limit and maturity of the debtor and the guaranteed receivable.

• Collection

The collection and follow-up of receivables on their due dates and reporting them to the customer; this is the management of receivables.

• Assignment

The legal transfer of a receivable, with all its obligations, from the creditor (assignor) to another party (assignee).

• Assignment Notice

This is a general assignment notice sent to the buyer when a factoring transaction begins between the factoring company and the seller for that buyer.