Cash Advantage
The prepayment made by Akdeniz Factoring will enable you to pay cash for your raw materials, enjoy discounts and reduce your manufacturing costs, creating yourself higher profit rates.
Competitive Advantage
With its fast and quality services, Akdeniz Factoring will support your competitive edge by enabling you to offer longer payment terms to your buyers.
Balance-sheet Advantage
Akdeniz Factoring helps you reduce your accounts receivable, stocks and commercial debts, increasing your operating capital and making your balance-sheet more liquid without taking out loans.
In sum, as a form of RECEIVABLES, COLLECTION AND CASH MANAGEMENT, factoring has a simple working mechanism. The factoring transaction starts once the factor receives the following documents from the seller to be used in order to test the credibility of the seller and the buyer.
In light of this information, the factor investigates the client and their debtor and offers the client the conditions of the factoring contract, the commission and the applicable interest rate. Following an agreement with the client, the factoring contract is signed, and work begins upon the assignment of the receivables by the seller to the factor.
The Assignment of the Accounts Receivable and Payment
The client assigns their receivable assets to Akdeniz Factoring.
The client is asked to show collaterals for the assigned receivables.
An investigation is carried out to check whether the receivable assets derive from a genuine commercial exchange.
Akdeniz Factoring buys the receivables in accordance with the factoring contract.
Akdeniz Factoring pays the client for their receivables according to the economic conditions of the day.
Collection
Our company takes charge of collecting the accounts receivable arising from your sales.
Our company records and follows up your receivables.
Our company issues an invoice for the accrued factoring fee, commission and similar costs. This invoice can be included in your financing expenses.
Our company sends clients a monthly statement and reports showing their accounts receivable.
As is evident from the above, factoring takes on financial transactions and collection functions that are quite costly for company management teams, and offers enterprises the opportunities to make them grow.
