What is Factoring?

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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.