Akdeniz Faktoring

Frequently Asked Questions

Bank loans that are given against promissory notes use promissory notes as collateral. These are transferred to the bank with restricted endorsement and continue to be monitored in the assets part of the balance-sheet as notes receivable. The loan, in turn, is showed as financial debt. In a factoring transaction, the promissory note directly represents the receivable asset and is transferred to the factoring company with an alienatory endorsement. The amount of the transferred note is excluded from notes receivable in the balance-sheet and is converted to cash, not shown as financial debt.
Receivables from companies who work with you on an unsecured account basis are transferred to the factor through a factoring contract, which is essentially an assignment agreement. Subsequently, when the invoice is issued a note is added, notifying the debtor that the receivables subject to the invoice are transferred to a factor and that the invoiced amount needs to be paid into the account of the factor.
There may be two types of costs entailed in factoring transactions depending on the scope of the transaction. The first of these is the commission and costs associated with the mediation of the collection of a receivable and/or the collection guarantee extended. The other is the interest to be paid if prepayment has been requested.
Of course. The financing function is only one of the three functions of factoring along with the service and provision functions. You can enjoy only collection and/or guarantee functions without using the financing function.
Prepayment is done against the receivable assets assigned to the factor and is usually not more than eighty per cent of the account receivable.
This will be subject to the agreement between the client and the factor. Legal action may be taken by the client or by the factor who will bill their client for this service.
No, this is not mandatory, although in principle it is more suitable to assign all receivables in total and in advance.
The legislation stipulates that receivables to be subject to factoring must be based on an invoice or a similar document. This indicates that an invoice is essential. However, in cases where an invoice cannot be issued due to legal or technical reasons, the receivable can still be referred to factoring if it can be certified by a similar document
There are three types of services, including financing, guarantee and collection. Clients may make use of all three services or only one service based on their agreement. Financing consists of prepayment of a certain percentage of the receivables to the client, guarantee is extending a guarantee for a receivable in case the buyer company defaults, while collection is the management of the receivables, their collection, follow up and reporting to the client.
In general, investment goods, perishable products and receivables arising out of sales within the same group of companies are not suitable for factoring.
Revocable factoring is the type of factoring where the factoring company does not take the risk of non-payment of the receivable. Only financing and collection services are offered in this model. If the receivables are not paid, the factoring company has the right to revoke and request the pre-payment back from the seller.
In general, factoring is offered for receivables with a maturity of up to 120 days, however, factoring companies may be willing to evaluate longer maturities.