What is factoring?
Factoring is a financial instrument providing minimum one service from guarantee, collection/receivables management and financing procedures to the Seller by transferring the debts arising from product or service sales.
The parties in a factoring transaction are:
FACTOR: Refers to the Factoring Company providing necessary factoring service.
CLIENT: Refers to the beneficiary of factoring service.
DEBTOR: Refers to the receivable subjected to the transfer procedure.