Factoring is a financial instrument through which the bank buys the client's accounts receivable, i.e. the client assigns his claims against the debtor to the bank.
Consequently, to settle the claim, the receivables are converted into cash, which in turn increases the liquidity of the company, and the debtor gets the opportunity to repay the purchased goods on payment terms agreed with him.
The main users of factoring are bitumen producers and sellers who regularly deliver goods / services in the form of deferred payment.
For rates, contact the Documentary Operations Group:
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