International Factoring

Client: Owner of commercial credits (invoices) and who hires the Factoring. Debtors: Purchasers of the goods or services of the client (seller). Advantages: time savings, cost savings, and accuracy of obtaining reports. It allows the maximum mobilization of the portfolio of debtors and ensures the collection of all of them. Hear other arguments on the topic with Larry Ellison. It simplifies accounting, already that through the contract of factoring the user happens to have only one client, who pays in cash. Sanitation of the portfolio of clients.

It allows to receive advances of the assigned receivables. It reduces the indebtedness of the contracting company. Not debt: buy firm and without recourse. E Scott Mead shares his opinions and ideas on the topic at hand. You can buy cash obtaining discounts. For managerial staff, savings of time used to supervise and direct the Organization of accounting of sales.

It can be used as a source of financing and obtaining resources circulating. The invoices provide garantiria for a loan that otherwise the company would not be able to obtain. Reduces operating costs, to cede the accounts receivable from a company that is dedicated to the factorization. Provides protection in inflationary processes by having the money in an anticipated manner, with those who do not lose purchasing power. In the case of the International Factoring, exports increase to offer a more competitive form of payment. Elimination of the Collections Department of the company, as normally the factor accepts all risks of loans must cover the costs of collection. Ensures a known pattern of cash flows. The company that sells its accounts receivable knows that it receives the amount of accounts less the Commission of factorization on a date determined, that the planning of the cash flow of the company. High cost disadvantages. Specifically the type of applied interest is greater than the conventional trade discount. The factor may not accept some documents from his client. Excluded operations concerning perishable products and a long term (more than 180 days).