Domestic factoring business, also known as accounts receivable financing, refers to the business that the company transfers your accounts receivable to the bank after passing the bank audit and obtains funds in advance. ?
According to different types, it can be divided into buyout factoring and repurchase factoring. ? The audit focus of factoring bank is mainly to check the repayment ability of the debtor (that is, the company that owes money to the company)
Foreign factoring is mainly a financial product designed according to the import and export business of import and export enterprises. Its main function is also to enable import and export enterprises to obtain funds in advance. ? Specific products include packaged loans and invoice discounting. ? This leads to the denial of the validity of the reservation contract itself. "
Extended data:
Definition of Factoring in the International Factoring Convention of the International Institute for the Unification of Private Law
Factoring refers to the contractual relationship between the seller/supplier/exporter and the factor. According to this contract, the seller/supplier/exporter transfers its current or future accounts receivable based on the goods sales/service contract signed with the buyer (debtor) to the factor, and the factor will provide at least two of the following services:
trade financing
Sales general ledger account management
After the seller carries out the factoring business, the factoring business will provide the seller with various financial statistics reports such as collection of accounts receivable, overdue accounts, changes in credit line and statements. Assist the seller in sales management regularly/irregularly according to the seller's requirements.
Collection of accounts receivable
Factors generally have professionals and full-time lawyers to collect accounts. According to the overdue time of accounts receivable, factoring business will take measures such as letters, telephone calls, door-to-door reminders and laws.
Credit risk control and bad debt guarantee
After the seller signs a factoring agreement with the factor, the factor will approve a credit line for the debtor, and adjust the credit line according to the change of the debtor's credit situation during the implementation of the agreement. The Factor provides 100% bad debt guarantee for the accounts receivable arising from the seller's delivery within the approved credit line.
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