FACTORING AND FORFEITING. the faster way to get your money
|
|
- Amice Andrews
- 8 years ago
- Views:
Transcription
1 FACTORING AND FORFEITING the faster way to get your money
2
3 3 CONTENTS FACTORING 4 DOMESTIC FACTORING 5 1. Supplier s factoring (Reverse factoring) 5 2. Selective factoring with right of recourse 6 3. Individual purchase of invoices (invoice discount) with right of recourse 7 4. Long term factoring - purchase of receivables on the basis of leasing agreements 8 INTERNATIONAL FACTORING 9 1. Export factoring Import factoring 11 BILL OF EXCHANGE PURCHASE (DISCOUNTING) 11 FORFEITING 12 CONTACTS 14
4 FACTORING If your money is worth more today than tomorrow then use factoring of Splitska banka! Factoring will enable you the collection of the issued invoices before the maturity date. Factoring is a financial service which includes some of the below mentioned services: Financing - disbursement of advance in the value of 70%-100% of the non due invoice amount, 4 reduced by the discount amount Insurance - in case of factoring without recourse, a factor insures the collection of A/R 1 from the debtor Collection - a factoring service which includes the collection of A/R from the debtor, notifying the debtor on the liability s maturity date, sending of reminders etc. Administration - service of administering the buyers and suppliers balance sheets Factoring advantages are: enables cash inflow before invoice maturity date a fast and simple way financing operational activities liquidity improvement and cash flow speeding up improvement of credit worthiness (in case of without recourse factoring) collection risk mitigation (in case of without recourse factoring ) sale growth financing possibility of buyers financing for longer periods A Factor is a bank or a specialized financial institution which provides factoring services. A Seller is a company having non due A/R against the issued invoices. Such company concludes a factoring agreement with the Factor for the purpose of speeding up the cash flow and shortening the A/R collection period. In such way, A/R with deferred payment become immediately collectible A/R. A Debtor is a company liable to pay the invoice at maturity. The Debtor is notified about the agreed factoring between the Factor and the Seller and it agrees to settle the liability at the maturity date of the invoice, in favor of the Factor s account (it is possible to agree a direct payment on the account of the Seller). 1 account receivables
5 DOMESTIC FACTORING 5 Splitska banka offers the following services in the segment of domestic factoring: 1. Supplier s factoring A Debtor can agree with Splitska banka the financing of its suppliers through supplier s factoring. The supplier s factoring is approved on the basis of the credit worthiness of the Debtor. In such way, the Debtor s suppliers get the short term financing in the fast way. The financing conditions are set on the basis of the credit worthiness of the Debtor which is, in principal, better than the credit worthiness of an individual supplier. Benefits for the Debtor: Extending the payment deadlines towards suppliers Working capital optimization Strengthening the relationships with the strategic suppliers Cash flow improvement and control Benefits for the suppliers: Liquidating up to 100% of A/R declared in the invoice Lower financing costs thanks to the better credit worthiness of the Debtor The stronger relationships with a strategic Debtor Volume increase of products and services sale DEBTOR 1 3 SPLITSKA BANKA 1. Supplier s factoring contract 2. Invoice payment at maturity 3. Disbursement of advance based on purchased a/r 2 SUPPLIER 1 SUPPLIER 2 SUPPLIER 3 SUPPLIER 4
6 2. Selective factoring with recourse 6 A Seller may agree with the Bank to factor A/R towards the Debtors selected by the Bank. The Bank and the Seller conclude the Factoring Agreement under which the Seller undertakes to sell to the Bank A/R towards the selected Debtors and the Bank undertakes to provide the financing up to a certain amount on the basis of the assigned A/R. Selective factoring advantages: Reducing the credit liabilities towards suppliers Speeding up a company s cash flow Increasing the self-financing share Mitigating the indebtedness indicators Controlling the Debtor s credit worthiness SELLER 1 3 SPLITSKA BANKA 1. Factoring agreement 2. Disbursement of an advance 3. Notification on a/r purchase (Assignment) 2 DEBTOR 1 DEBTOR 2 DEBTOR 3 DEBTOR 4
7 3. Factoring of individual invoices (invoice discounting) with recourse 7 The Bank monitors continually the market trends and does required analyzes of business entities. In such way, it enables individual invoice factoring, without additional approval procedure. Should the factoring between the Bank and the Seller be realized, the Agreement on Invoice Discount (A/R) is concluded as well as the Assignment Agreement under which the Debtor undertakes to pay its liability on the Bank s account, at maturity. Advantages of invoice discounting: Flexible management of liquidity Speeding up a company s cash flow Mitigation of indebtedness indicators 1 SELLER 2 4 SPLITSKA BANKA 1. Invoice factoring offer 2. Factoring & assignment agreement 3. Notification on factoring 4. Factor price disbursement 5. Payment of liability at maturity 3 5 DEBTOR
8 4. Long term factoring - A/C purchase under the operational leasing agreements 8 It is a specific factoring product in which a structure of the transaction can be also applied on factoring of other ABA 2 i.e. the agreements which are covered by additional security instruments (creating of services tailored as per the A/R seller s requirements). The seller of the A/R is a leasing company which wants to cash in the A/R immobilized in the operational leasing agreement. The Bank and the leasing company conclude the A/R factoring agreement and the assignment agreement between the Bank, the leasing company and the final debtor (i.e. the ultimate leasing beneficiary), is signed. The Bank pays out to the leasing company the whole agreement value, reduced by the factoring cost. Repayment of the purchased A/R is reconciled with the basic agreement i.e. with the lease agreement and the ultimate debtor effects the payment on the Bank s account, at maturity. Benefits of the long term factoring for the seller of the agreement: Liquidation of the long term assetscollection is transferred to the Factor Speeding up and improvement of cash flow the leasing company Financial capacity increase needed for business expansion LEASING COMPANY 2 3 SPLITSKA BANKA 1. Lease agreement 2. Lease agreement factoring 1 3. Factor price disbursement 4. Payment of liabilities (installments) at maturtiy 4 ULTIMATE DEBTOR = LEASING BENEFICIARY 2 Asset Backed Agreements
9 INTERNATIONAL FACTORING* 9 International factoring is a purchase of short term A/R resulting from foreign trade transactions on open account terms. The international factoring is intended for both - exporters (export factoring) and importers (import factoring). It is an alternative to other methods of export insurance and/or financing (for ex. documentary letter of credit, payment guarantee, export insurance, short term liquidity financing etc.). Participants in the international factoring are: An Exporter i.e. a Seller (also, commonly called a client or a supplier), a party that issues an invoice for delivery of goods or providing of services; An Importer i.e. a Debtor (also, commonly called a buyer or a client), a party that is liable to pay the A/R against the delivery of good or providing of services; An Export Factor, a bank or a specialized financial institution to which an exporter assigns its A/R under the factoring agreement; An Import Factor, a bank or a specialized financial institution to which an export factor assign A/R and which makes the collection from an importer i.e. a debtor. *Societe Generale - Splitska banka d.d. is a member of FCI (Factoring Chain International), the international factoring organization. It offers international factoring service following the standards and rules of that group (the so called two-factor system).
10 1. Export factoring 10 Another name for this product is complete- without recourse factoring. The product is intended for the exporters which sell their goods and services on foreign markets. Splitska banka appears in the capacity of the export factor in this transaction. In cooperation with the correspondent foreign factors which are FCI members too, it enables non-recourse factoring of A/R for exporters as well as insurance of the subject A/R. Export factoring advantages: Insurance of A/R s Exchange rate fluctuation protection Checking the credit worthiness of foreign buyers Collection of A/R on world markets (particularly favorable if you export in more countries) Financing - disbursement of a portion of an invoice (70%-90%), prior to its maturity Increase of the financial capacity for business expansion FOREIGN FACTOR (import factor) 1 5 SPLITSKA BANKA (export factor) DEBTOR (importer) SELLER (exporter) 1. Risk insurance and collecton 2. Assignment of a/r s 3. Disbursement of advance reduced by discount 4. Invoice payment at maturuty 5. Transfer of collected amount 6. Disbursement of the remaining invoice amount
11 2. Import factoring The import factoring is the process reversed to export factoring: the Bank has the role of the import factor and it collects the A/R from a Croatian company - an importer (collection service), which ensures collection of A/R s to a foreign supplier. The factoring, as a form of short term financing, is very developed in the 11 world. The factoring transactions volume exceed several tens of billions Euro p.a.. Foreign companies have well established cooperation with their factoring companies and they prefer to use factoring, as a form of financing and insuring of their export, particularly when it comes to new and unknown buyers. Benefits for importers: Easier access to foreign suppliers market Providing additional security for their buyers by checking the credit worthiness and by insuring the payment Longer payment terms approved by suppliers FOREIGN FACTOR (export factor) 1 4 SPLITSKA BANKA (import factor) SELLER (foreign supplier) DEBTOR (importer) 1. Import factoring request 2. Checking the importer s credit worthiness; signing of assignment of a/r 3. Invoice payment at maturity 4. Transfer of collected amount 5. Disbursement of collected amount DISCOUNT OF BILL OF EXCHANGE Splitska banka offers a service of BoE 4 discount, which enables to BoE holder to cash in BoE value before its maturity. If the BoE debtor is estimated by the Bank as a credit worthy company, the Bank 4 Bill of Exchange will disburse to the BoE seller the face value discounted for the amount of interests and fee. If you have a BoE which you want to be discounted, please contact Factoring Department.
12 FORFEITING 12 In respond to the requirements and needs of the Croatian exporters, we introduced a new product in our Bank s offer, purchase of A/R based on documentary L/C with deferred payment. Another name for this type of A/R purchase is forfeiting. Forfeiting is a purchase of debtors instruments and A/R - without recourse. The A/R which areforfeited should be: irrevocable, unconditional and transferable. An A/R forfeiter purchases the A/R in 100% value, decreased by the discount and contracted fee. Forfeiting advantages are: Protection against country risk, payment risk and exchange rate risk Liquidation of A/R which fall due in longer periods of time Speeding up of cash flow which enables the further sale growth Improvement of liquidity, financial stability and indebtedness indicators Important! We can forfeit only that documentary L/Cs with deferred payment, which are domiciled (which can be collected) at Splitska banka. L/C ISSUING BANK SPLITSKA BANKA (domiciled bank) FOREIGN BUYER (importer) 2 CROATIAN EXPORTER 1. L/C opening with deferred payment 2. Delivery of goods 3. Documents presentation 4. Acceptance of documents and payment liability 5. Disbursement of discounted amount of document (delivery) value 6. Payment at maturity 7. Payment of liability under L/C
13 A Buyer of goods /Applicant i.e. a Principal - the buyer of goods appears in two legal relationships and that is: once as the buyer in the basic (commercial) relationship towards the seller and the second time as the applicant in relation to L/C issuing bank with the request for L/C opening. A Seller (a beneficiary) - the seller of goods or the service provider appears in the capacity of the L/C beneficiary which should present the documents indicated in the L/C to the Bank. A Letter of Credit with Deferred Payment - the L/C under which the L/C issuing bank and/or the L/C confirming bank takes over the liability of deferred payment at maturity, as per the L/C terms. 13 An Issuing bank - the Bank which issues the L/C at the request of the applicant or for its own account. A Nominated Bank - i.e. a domiciled bank; every bank, except the issuing bank, with which the L/C is available or any other bank in case when the L/C is available with any other bank. Confirmation - implies the liability undertaken by the confirming bank, added to the liability of the issuing bank, that the L/C will be honored or negotiated following the orderly presentation of documents.
14 KONTAKTI 14 Societe Generale - Splitska banka d.d. Factoring department Ulica grada Vukovara 284/XIII Zagreb factoring@splitskabanka.hr Fax: 021/ Manager - Factoring Department Ivan Vuković Phone: 01/ Deputy Manager - Factoring Department Nives Rudež Phone: 01/ International Factoring and Forfeiting Officer: Tomislav Vojak Phone: 01/ Domestic Factoring Officers Silvio Markulin Phone: 01/ Branko Lesjak Phone: 01/
15
16
Flashcards for Chapter 6 Introduction to Working Capital Management [ ]
Flashcards for Chapter 6 Introduction to Working Capital Management [ ] [Type the abstract of the document here. The abstract is typically a short summary of the contents of the document. Type the abstract
More informationEXPORTER S SOUK EVENT FOUR SEASONS 4/23/2015 1
EXPORTER S SOUK EVENT FOUR SEASONS 4/23/2015 1 FACTORING Factoring is a financial transaction whereby a company sells its receivables to a Third Party (Factoring Company) at a discounted rate. Not a loan
More informationDiscounting, Factoring & Forfeiting
Discounting, Factoring & Forfeiting Introduction Bill Discounting Factoring- Meaning & Definition Modus Operandi Terms of Agreement Functions Types of Factoring Factoring Vs Discounting Cost of Factoring
More informationInternational Sales Finance Solutions
International Sales Finance Solutions Global Transaction Services Cash Management Trade Services and Finance Securities Services Fund Services International Sales Finance Solutions Financing Tools to Support
More informationFAQs Trade Finance. ecobank.com
FAQs Trade Finance ecobank.com TRADE FINANCE FAQS Q. What are the products used by banks in international trade? A. Cheques, transfers, bill of exchange, documentary bill, documentary collection, letter
More informationFactoring and forfaiting. International financial settlements 120881-1165
Factoring and forfaiting 1 Factoring Factoring is a transaction where the exporter sells its receivables to an institution The factoring institution buys the receivables without recourse Due to increased
More informationThe World of (International)Factoring
The World of (International)Factoring Facts & Figures Different Products The Two-Factor System The Role of IFG Erik Timmermans Secretary General IFG 1 Evolution of World Factoring Turnover 1980 : +/- 50
More informationMANAGING CREDIT RISK IN A VOLATILE MARKETPLACE
Export Forum 2015 October 14, 2015 MANAGING CREDIT RISK IN A VOLATILE MARKETPLACE Presented by: George Babeu, President One Source Risk Management and Funding, Inc. WHAT WE WILL DISCUSS Today s volatile
More informationFORFAITING A USER'S GUIDE WHAT IT IS, WHO USES IT AND WHY?
FORFAITING A USER'S GUIDE WHAT IT IS, WHO USES IT AND WHY? By: John F Moran, Jr. Abstract Italian and West German exporters have long been familiar with Forfaiting and still provide the bulk of the market.
More informationFORFAITING. A useful tool in Trade Finance
1. What is Forfaiting? 2. Which instruments are eligible for forfaiting? 3. Why does the Exporter like the forfaiting tool? 4. What is the advantage for the Importer? 5. Any advantage for the Importers
More informationINTERNATIONAL PAYMENT METHODS
S T R I C T L Y P R I V A T E A N D C O N F I D E N T I A L INTERNATIONAL PAYMENT METHODS Broward Economic and Small Business Development Export Readiness Semiar February, 2012 Abby Martinez Vice President
More informationFactoring is emerging as a short-term financial solution for business The role of FCI
Factoring is emerging as a short-term financial solution for business The role of FCI Daniela Bonzanini Chairman of Factor Chain International Torino, 10 June 2015 1 Factoring Spreading its Wings! GLOBAL
More informationWorking Capital Solutions. Marc Huijben Laurent de Coster International Business Week October 2012
Working Capital Solutions Marc Huijben Laurent de Coster International Business Week October 2012 Our Team at the conference Agenda ING Working Capital Solutions - Introduction WCS Products Supply Chain
More informationHow To Understand Book Debt Finance In India
Chapter 7 Discounting. Factoring & Forfeiting Summary The financial service sector is developing at rapid pace in India. This is just because of the emerging needs of the economy. Many innovative schemes
More informationFinancial Instruments
There are two basic forms of Letters of Credit: Standby (SBLC) and Documentary (DLC). Financial Instruments Documentary Letters of Credit can be either Revocable or Irrevocable, although the first is extremely
More informationTerms and Techniques to Manage Receivables, Protect Assets and Enhance Working Capital
Terms and Techniques to Manage Receivables, Protect Assets and Enhance Working Capital TERM / TECHNIQUE DEFINITION APPLICATIONS ADVANTAGES DISADVANTAGES Open Account Terms Seller makes shipment and awaits
More informationOptimizing Payment Cycles for Trade Payables and Receivables
Optimizing Payment Cycles for Trade Payables and Receivables Houston Treasury Management Association Space City Cash Conference September 2013 Madeline Sprague, HSBC Bank USA, N.A. Global Trade & Receivables
More informationTHE CONCEPTUAL FRAMEWORK OF FACTORING ON SMALL AND MEDIUM ENTERPRISES
THE CONCEPTUAL FRAMEWORK OF FACTORING ON SMALL AND MEDIUM ENTERPRISES Minaxi Rani Assistant Professor (Extn.), Department of Commerce, Govt. College for women P.G. College, Hisar, Haryana, (India) ABSTRACT
More informationManaging International Trade.
Managing International Trade. The most useful global currency is knowledge. Important foreign currency warning There is an important warning on the next page which you should read. Foreign currency warning
More informationEUF STATISTICS. 31 December 2013
. ESTIMATES OF EU TURNOVER VOLUMES. Turnover volumes by product, allocation and notification (Estimates of EU s, Millions of ) Estimate of the EU % on Turnover Significance of the sample on total turnover
More informationSubject. PAPER No. : Financial Management MODULE No. : Factoring services
Subject Paper No. and Title Module No. and Title Module Tag Paper No.8: Financial Management Module No. 36: Factoring services COM_P8_M36 TABLE OF CONTENTS 1. Learning outcomes 2. Introduction 3. Mode
More informationSmall and Medium Enterprises
Small and Medium Enterprises YOUR LOANS Small and Medium Enterprises Financing Products for Your Business A consumer education programme by: contents 1 Introduction 2 The right product for the right purpose
More informationFactoring and Forfaiting
Factoring and Forfaiting -A fund/fee based financial service Prof. Nishant Dhruv, What is Factoring? Definition: Factoring provides resources to finance receivables as well as facilitates the collection
More informationCIMA F3 Course Notes. Chapter 3. Short term finance
CIMA F3 Course Notes c Chapter 3 Short term finance Personal use only - not licensed for use on courses 31 1. Conservative, Aggressive and Matching strategies There are three over-riding approaches to
More informationFORFAITING IMPROVE YOUR CASH FLOW & MITIGATE RISK - WHILE OFFERING YOUR CUSTOMERS EXTENDED PAYMENT TERMS
Financing International Sales using Forfaiting Presented by Gregory Bernardi LFA FORFAITING IMPROVE YOUR CASH FLOW & MITIGATE RISK - WHILE OFFERING YOUR CUSTOMERS EXTENDED PAYMENT TERMS 1 FORFAITING AGENDA
More informationEWL FINANCIAL Presents. Introduction to Factoring
EWL FINANCIAL Presents Introduction to Factoring Factoring Overview To provide you with: 1. A basic understanding of factoring and relevant terminology. 2. A step-by-step explanation of the factoring product.
More informationFINANCING GUARANTEES INSURANCE
FINANCING GUARANTEES INSURANCE ABOUT US UNIQUE INSTITUTION ON THE ROMANIAN FINANCIAL/BANKING MARKET Target client groups: Companies with high development potential that can drive growth in the Romanian
More informationInternational Factoring. Milan, 2014
International Factoring Milan, 2014 Agenda UBI FACTOR What is Factoring International Factoring Differences between Factoring and Banking Mutual Benefits 2 A Leader in the Italian and European Factoring
More informationHaving cash on hand is costly since you either have to raise money initially (for example, by borrowing from a bank) or, if you retain cash out of
1 Working capital refers to liquid funds used to purchase materials and pay workers. This is in contrast to long term capital such as buildings and machinery. Part of working capital management is cash
More informationBy using a documentary credit, an exporter is certain of receiving payment at the agreed time, and of having a source of finance.
Documentary Credits Security of settlement through documentary credit With the exporter's interest in optimising security for the payments he is to receive, especially those from the faraway markets, interest
More informationPresentation on Banking & Finance - Exports Prashanth.S.Bhat. Cost Accountant
Presentation on Banking & Finance - Exports Prashanth.S.Bhat Cost Accountant Export Finance & Factoring Services EXPORT FINANCE - PCFC - Post shipment finance - Factoring Services IMPORT FINANCING - Buyer
More informationATOMEX-Europe 2013. 8-9 October 2013, Brno, Czech Republic
ATOMEX-Europe 2013 8-9 October 2013, Brno, Czech Republic VTB today VTB is a backbone Russian bank, which has built an international financial group. VTB Group possesses a unique international network
More informationGlobal Transaction Services
Global Transaction Services Cash Management Trade Services and Finance Securities and Fund Services Maximizing the Benefits of Export Letters of Credit: A Risk Mitigation Tool William E. Morrissey Director
More informationJ. Gaspar: Adapted from Jeff Madura, International Financial Management. Slides by Yee-Tien (Ted) Fu
Chapter 19 Financing International Trade J. Gaspar: Adapted from Jeff Madura, International Financial Management 19. 1 Slides by Yee-Tien (Ted) Fu Merchandise Trade Merchandise trade, i.e., exports and
More informationExport Transactions. Finance and Risk
Export Transactions Finance and Risk Table of Contents Export Finance Export Finance Methods Pre-Export Export Finance Methods Post-Export Structured Commodity Finance Export Risk Forms of Export Risk
More informationOverview of Financial Solutions
Overview of Financial Solutions The Etra Advisory Group provides solutions to businesses for growth, expansion, cash flow, refinance and acquisition. We cover the world of business financing that banks
More informationMeaning & Definitions Aspect of Credit Management Objectives of Accounts Receivables Management Advantages of Trade Debtors Management Costs of
Management of Accounts Receivable Meaning & Definitions Aspect of Credit Management Objectives of Accounts Receivables Management Advantages of Trade Debtors Management Costs of Maintaining Accounts Receivables
More informationFACTORING LAW I. BASIC PROVISIONS II. DEFINITIONS
FACTORING LAW I. BASIC PROVISIONS Article 1 This Law governs the concept and subjects of factoring; parties to factoring; conditions and manner of providing factoring services; types of factoring; rights
More informationFirst column=preferred terms. Bold and italics signifies other defined terms. Bold signifies alternate terms used.
First column=preferred terms. Bold and italics signifies other defined terms. Bold signifies alternate terms used. 1= Governance; 2=Facilities and Products; 3 Charges; 4 Legal terms and security arrangements;
More informationFactoring Liquidity Assured
Liquidity Assured Affords Greater Flexibility. Is your company aiming to finance its own growth? Are you looking to expand abroad or simply to improve your financial scope? If so, factoring with Credit
More informationTrade Receivables Solutions
Trade Receivables Solutions With GSCF, you can improve your working capital without compromising relationships in your supply chain. Our Trade Receivables Solutions let you shorten your and extend the
More informationINTERNATIONAL FACTORING
INTERNATIONAL FACTORING November 3, 2011 1 L. Gabriel Segura President and founding officer of CVCredit Inc, a Miami-based company which focuses in USA-domestic and international factoring services. Nine
More informationGENERAL TERMS & CONDITIONS OF FACTORING
GENERAL TERMS & CONDITIONS OF FACTORING (HEREINAFTER REFERRED TO AS GENERAL TERMS & CONDITIONS OR THESE GENERAL TERMS & CONDITIONS) 1. DEFINITIONS AND INTERPRETATION 1.1. These General Terms & Conditions
More informationUSER GUIDE INTERNET BANKING FOR BUSINESSES FINANCING OPERATIONS. Zagreb, June 2015. Privredna banka Zagreb d.d.
USER GUIDE INTERNET BANKING FOR BUSINESSES FINANCING OPERATIONS Zagreb, June 2015 Privredna banka Zagreb d.d. TABLE OF CONTENTS: SAFETY WARNING... 2 GENERAL INFORMATION ABOUT FINANCING... 2 REQUEST FOR
More informationTo enable highly rated corporate borrowers to diversify their sources of short term borrowings.
COMMERCIAL PAPER (CP) CP is an unsecured money market instrument issued in the form of a Promissory Note and was introduced in 1990. Can now be issued in Dematerialised form. To enable highly rated corporate
More informationsalesinvoices@leaseinvestment.com www.leaseinvestment.com Tel: +44871 237 4770 Fax: +44701 423 7002
INVOICE DISCOUNTING, FACTORING & SALES LEDGER MANAGEMENT Selling your sales Invoices or outsourcing your sales ledger is one of the most complex techniques for business finance. Unfortunately, it is often
More informationAl-Saudia Virtual Academy Pakistan Online Tuition Online Tutor Pakistan
Al-Saudia Virtual Academy Pakistan Online Tuition Online Tutor Pakistan LETTERS OF CREDIT Introduction: As the world s economy expanded, international trade started. In the beginning, there were serious
More informationCustomer financing in Brazil Guide for a Finnish SME exporter
Customer financing in Brazil Guide for a Finnish SME exporter Contents Financial markets 2 Know your customer 3 Prepayments received from the buyer 4 Granting payment terms with invoice 5 Bills of exchange
More informationHow To Factoring
THE BASICS OF FACTORING A Guide to Understanding Accounts Receivable Financing The Basics of Factoring Table of Contents What is Factoring?.. 1 Benefits of Factoring 4 What Types of Businesses Utilize
More information3. Seasonal or cyclical working capital to finance the temporary cash shortfalls due to the nature of the firm s normal business cycle.
11.437 Financing Community Economic Development Class 5: Working Capital Financing I. Three different meanings of term working capital 1. Excess of current assets over current liabilities 2. Firm's investment
More informationHow To Understand Factoring
LESSON 13: FACTORING THEORETICAL FRAMEWORK Lesson Objectives To understand the Concept of Factoring. Methodology of Factoring and Forfeiting. Types of factoring. Introduction Receivables constitute a significant
More informationIt is concerned with decisions relating to current assets and current liabilities
It is concerned with decisions relating to current assets and current liabilities Best Buy Co, NA s largest consumer electronics retailer, has performed extremely well over the past decade. Its stock sold
More informationR Routledge LEGAL ASPECTS OF TRADE FINANCE. Dr C Chatterjee LL.M (Cambridge), LL.M, Ph.D (London) Barrister. Taylor & Francis Croup
LEGAL ASPECTS OF TRADE FINANCE Dr C Chatterjee LL.M (Cambridge), LL.M, Ph.D (London) Barrister R Routledge Taylor & Francis Croup LONDON AND NEW YORK CONTENTS List of Cases xii 1 Chapter 1 Methods of Payment
More informationPRESENTATION ON FACTORING BY GLOBAL TRADE FINANCE LIMITED 19.06.2007. Global Trade Finance Ltd
PRESENTATION ON FACTORING BY GLOBAL TRADE FINANCE LIMITED 19.06.2007 o Incorporated in March 2001 o o o o ABOUT GTF India s first International Factoring Company RBI has accorded registration and Authorised
More informationOUR PRODUCTS. ARTEMIDA-DIJANA FACTORING - your debtor s discount bill of exchange. HESTIJA-VESTA FACTORING own bond discounting to meet obligations
OUR PRODUCTS PALETTE I: you have turned commercial loan into financial loan: ARTEMIDA-DIJANA FACTORING - your debtor s discount bill of exchange ATENA-MINERVA FACTORING cession sale HESTIJA-VESTA FACTORING
More informationHow To Finance Export-Oriented Smes
Contemporary Logistics 06 (2012) 1838-739X Contents lists available at SEI Contemporary Logistics Journal homepage: www.seiofbluemountain.com Two-factor Export Factoring: Optimal Option for Export-oriented
More informationTrade Services Service & Price Guide
Trade Services Service & Price Guide Version1: April-2014 Standard pricing applicable for Trade Services (applicable for Wholesale Banking / Transaction Banking / SME & Consumer Banking Clients of Standard
More informationpractical information
practical information hermes cover special Refinancing of officially supported export receivables march 2012 practical information hermes cover special Refinancing of officially supported export receivables
More informationHow To Get A Working Capital Loan From The Ex-Im Bank
How to Finance Export Receivables By Michael D. Farstad Export Finance Lender Table of Contents New Products Working Capital Supply Chain Finance Guarantee Program Global Credit Express Loan Guarantee
More informationPropelling factoring businesses enterprise wide. Your factoring solution ready to go KAPPS. KAPPS Consulting Pte. Ltd.
Propelling factoring businesses enterprise wide Your factoring solution ready to go KAPPS KAPPS Consulting Pte. Ltd. KAPPS Consulting Pte. Ltd. KAPPS Consulting is the center for translating business and
More informationFactoring in the 21st Century
Factoring in the 21st Century The economic relevance of factoring and trade finance in Europe May 2013 1. What is factoring? 2. Who are factoring clients? 3. European factoring market and future trends
More informationApple Capital Group, Inc.
COMMERCIAL FINANCE Commercial finance typical revolves around what are considered the assets of your business and are often called "asset based loans". The assets of your business are things such as your
More informationBill Discounting. Exporter. Importer BANKING AND TRADE FINANCE TUTORIAL. Importer s Bank. Exporters Bank INDIA FOREX ADVISORS.
Bill Discounting While discounting a bill, the Bank purchases the bill receivable to the Exporter (i.e. Bill of Exchange or Promissory Note) before its due date and credits the value of the bill to the
More informationINTERNATIONAL FACTORING A VIABLE FINANCING SOLUTION FOR FIRMS
Finances - Accounting INTERNATIONAL FACTORING A VIABLE FINANCING SOLUTION FOR FIRMS Assoc. Prof. Ph.D Giurc Vasilescu Laura University of Craiova Faculty of Economy and Business Administration, Craiova,
More informationforeign risk and its relevant to acca qualification paper F9
01 technical foreign risk and its relevant to acca qualification paper F9 Increasingly, many businesses have dealings in foreign currencies and, unless exchange rates are fixed with respect to one another,
More informationReducing Risk Through Bank-Assisted Open Account
Reducing Risk Through Bank-Assisted Open Account Written by Bottomline Technologies and David Hennah of SWIFT This article was first published by GTNews Despite the recent credit crisis, globalisation
More informationEnhancing Supply Chain Finance with Bank Payment Obligation (BPO)
Enhancing Supply Chain Finance with Bank Payment Obligation (BPO) Peter Chin Sibos 2013 Dubai September 17, 2013 Copyright 2001 2013 Premium Technology, Inc All Rights Reserved BPO Enhancing Open Account
More informationContact details and instructions for trade transactions.
Contact details and instructions for trade transactions. Rabobank Nederland - Trade Services Contact details Delivery trade transactions For new transactions please use the online transaction service Rabo
More informationNATURE OF FACTORING. www.factors-chain.com/home www.factoring.org
NATURE OF FACTORING www.factors-chain.com/home www.factoring.org A US DEFINITION: a continuing arrangement between a factoring concern and the seller of goods or services on open account, pursuant to which
More informationGENERAL TERMS & CONDITIONS OF REVERSE FACTORING
GENERAL TERMS & CONDITIONS OF REVERSE FACTORING (HEREINAFTER REFERRED TO AS GENERAL TERMS & CONDITIONS OR THESE GENERAL TERMS & CONDITIONS) 1. DEFINITIONS AND INTERPRETATION These General Terms & Conditions
More informationXynergy Commercial Capital LLC
Xynergy Commercial Capital LLC How Can Work For You The Problem Short of cash and must pay suppliers, lease, bills and salaries? No need for stress, get your payments in advance for your invoices and pay
More informationSustainable financing solutions at times of crisis How to finance your business through factoring? Bucharest, October the 6-th, 2009
Sustainable financing solutions at times of crisis How to finance your business through factoring? Bucharest, October the 6-th, 2009 Dan Stoica, RomFactor 1 Agenda What is happening with companies in the
More information18 BUSINESS ACCOUNTING STANDARD FINANCIAL ASSETS AND FINANCIAL LIABILITIES I. GENERAL PROVISIONS
APPROVED by Resolution No. 11 of 27 October 2004 of the Standards Board of the Public Establishment the Institute of Accounting of the Republic of Lithuania 18 BUSINESS ACCOUNTING STANDARD FINANCIAL ASSETS
More informationIndex. call options 102 cap and floor options 103 capital goods 125 capital markets 145 capital risk 111 cargo insurance 16
Index acceptance 50 accessory obligation 71 Act of God 24 advance payment 35 advance payment guarantee 77 adverse business risks 20 advising bank 48, 73 air waybill 43 amendments 55 annuities 150 anti-corruption
More informationInternational Trade Financing and Risk Management Manual
International Trade Financing and Risk Management Manual Website: www.aepcindia.in For query please contact: Ms. Vanni Mehta, ecocell@aepcindia.com Incorporated in1978, (AEPC) is the official body of apparel
More informationOVERSEAS TRADE FINANCE ( OTF )
OVERSEAS TRADE FINANCE ( OTF ) Port to Port Trade Finance Trade Finance Equity Trade Finance Report 3 Port to Port Trade Finance Trade Finance Equity Overseas Trade Finance specialise in sourcing trade
More informationPAYMENT TERMS AND EXPORT FINANCE RESOURCES
GENERAL INFORMATION A successful export transaction starts with the negotiation of a sales contract and ends with a timely payment. The buyer/importer gets the product they want and pays the seller/exporter
More informationFORFAITING - CASH MADE FROM LOAN
FORFAITING - CASH MADE FROM LOAN MILJKOVIĆ ALEKSANDAR, MILJKOVIĆ LJUBOMIR Faculty for Education of the Executives, Novi Sad, Serbia Abstract: Bank are dealing with in present times many activities. Traditional
More informationASF Commission Affacturage 02/08/2011 BUSINESS JUSTIFICATION
BUSINESS JUSTIFICATION FOR THE DEVELOPMENT OF NEW ISO 20022 FINANCIAL REPOSITORY ITEMS A. Name of the request: Messages set for factoring services B. Submitting organisation: Association française des
More information128 SU 3: Financial Accounting I
128 SU 3: Financial Accounting I 3.5 FINANCIAL ASSETS AND LIABILITIES Definitions 1. Financial assets include cash, equity instruments of other entities (e.g., preference shares), contract rights to receive
More informationEmirates NBD Trade Finance Tariff Effective 22.06.2011 IMPORTS
Emirates NBD Trade Finance Tariff Effective 22.06.2011 IMPORTS DC Issuance Commission Standard Irrevocable DC First AED 100,000 0.125 % per month(minimum 3 months) Remaining DC value 0.0625 % per month(minimum
More information½ a mark for rounding up (6 marks) (b) There are a number of costs to the business associated with holding inventory:
EDI LCCI IQ ON DEMAND AWARD IN BUSINESS FINANCE AND BANKING OPERATIONS SAMPLE LEVEL 4 MARKING SCHEME DISTINCTION MARK 75% CREDIT MARK 60% PASS MARK 50% TOTAL 100 MARKS QUESTION 1 (a) Inventory days Receivable
More informationConcept Paper Factoring
Concept Paper Factoring Co-create. Innovate. Win. 2 1.0 INTRODUCTION 3 1.1. Trade transaction 3 1.2. Discounting Vs. Factoring 4 2. 0 FACTORING 4 2.1. Parties in Factoring 4 2.2. The Factoring Process
More informationAccounts Receivable and Inventory Financing
Accounts Receivable and Inventory Financing Glossary Accounts Payable - A current liability representing the amount owed by an individual or a business to a creditor for merchandise or services purchased
More informationFactoring as an Alternative Trade Finance Instrument in a Competitive World
Factoring as an Alternative Trade Finance Instrument in a Competitive World 22 November2013 Peter Brinsley Director, POINT FORWARD LTD Peter Brinsley - credentials 21 years in factoring Now a freelance
More informationELECTRONIC TIME DRAFTS AND SUPPLY CHAIN FINANCE
Electronic Time Drafts is the latest innovative product introduced by PrimeRevenue and will contribute to our long-term success as a global leader in the Supply Chain Finance market. David Quillian, Vice
More informationWant to start or grow your import/export business? Learn how from industry experts. View our training schedule. International Payment Methods
Want to start or grow your import/export business? Learn how from industry experts. View our training schedule International Payment Methods As the globe is becoming smaller and international trade is
More informationFrequently Asked Questions Trade Services
Frequently Asked Questions Trade Services IMPORT LETTER OF CREDIT What are the various forms of Import Services? (Payment instruments) in International Trade? There are two main options: Letter of Credit
More information(a) Accounts Receivable... 23,000 Sales Revenue... 23,000. (b) Sales Returns and Allowances... 2,400 Accounts Receivable... 2,400
BRIEF EXERCISE 8-1 (a) Other receivables. (b) Notes receivable. (c) Accounts receivable. BRIEF EXERCISE 8-2 (a) Accounts Receivable... 23,000 Sales Revenue... 23,000 (b) Sales Returns and Allowances...
More informationFEES FOR THE SERVICES OF PRIMORSKA BANKA D.D.RIJEKA NUM. TYPE OF SERVICE FEE
FEES FOR THE SERVICES OF PRIMORSKA BANKA D.D.RIJEKA A TRANSACTIONS WITH RESIDENT CORPORATE CLIENTS I DOMESTIC PAYMENT TRANSACTIONS NUM. TYPE OF SERVICE FEE 1. ACCOUNT REGISTRY SERVICES 1.1. Account opening
More informationFactoring in Turkey. Çağatay Baydar General Manager of TEB Faktoring A.Ş. Vice Chairman of FCI
Factoring in Turkey Çağatay Baydar General Manager of TEB Faktoring A.Ş. Vice Chairman of FCI Factoring in Turkey First factoring company established in 1990 Today; around 75 factoring companies Minimum
More informationMODULE 2 PRICING, FINANCING, PAYMENT METHODS DRAFTED BY: MYCCI BULGARIA
MODULE 2 PRICING, FINANCING, PAYMENT METHODS DRAFTED BY: MYCCI BULGARIA NOVEMBER 2012 Contents PRICING, FINANCING, PAYMENT METHODS...2 INTRODUCTORY NOTES:...2 ABSTRACT:...2 PRICING...3 Price, pricing &
More informationBrookfield financial Review q2 2010
Brookfield financial Review q2 2010 Overview Operating cash flow and gains totalled $327 million in the second quarter or $0.53 per share compared to $294 million in the prior year. This brings operating
More informationCARIBBEAN FINANCIAL SERVICES CORPORATION ACCOUNTS RECEIVABLE FACTORING
CARIBBEAN FINANCIAL SERVICES CORPORATION ACCOUNTS RECEIVABLE FACTORING DEVELOPING A REGIONAL PROGRAMME FOR SMALL BUSINESSES CONTENTS 2 Introduction Objective and Target Groups Definition of Accounts Receivable
More informationDB Squared Inc. Business Finance
DB Squared Inc. Business Finance 866.855.3640 www.dbsquaredinc.com Complete Guide to Invoice Factoring What is invoice factoring? Benefits of factoring invoices for a staffing agency Hidden costs of invoice
More informationCREDIT REPORT. Test d.d. Creditworthiness: BASIC COMPANY INFORMATION SHORT SUMMARY: (DECEMBER 2012) Creditworthiness: 0 EUR. Recommended credit limit:
CREDIT REPORT Test d.d. Date of preparation 9/11/2013 Creditworthiness: CRITICAL BASIC COMPANY INFORMATION Company name: Registered address: Fax: Electronic mail: Web page: Id no.: 1234567891 Tax no.:
More informationTHE WORKING CAPITAL CYCLE IN INTERNATIONAL TRADE
THE WORKING CAPITAL CYCLE IN INTERNATIONAL TRADE Introduction The working capital cycle is the period of time which elapses between the points at which cash is used in the supply/production process, to
More informationSupply Chain Finance Overview. January 2013
1 Supply Chain Finance Overview January 2013 What s in a Name? What is Supply Chain Finance? What does it really mean? Financial Times: Supply chain finance allows a supplier to sell its invoices to a
More informationGuide to importing and exporting
Guide to importing and exporting September 2011 Version 41 Table of contents Introduction 4 We have the solutions for your needs...4 Important Information...4 Getting started 5 What do I do first?...5
More information