D-1-4-1- Factoring procedures (explanatory diagram with a step-by-step procedure)
Payment processing is one of the main preoccupations of companies with international transactions. Doing business is important, but compensation is essential. Esandis offers you free training space dedicated to international transactions, and all the skills you need to become an export or import manager. Our objective is to provide you an understanding of the importance of the payment component of an international transaction.
1-4-1-1- The Factoring : general
Factoring is a complex payment technique.
Generally speaking, it is a payment technique where the objective is to protect the stakeholders in a transaction, in our case the exporter and the importer.
1-4-1-2- Explanatory diagram with a step-by-step procedure
Exporter
Factoring company
Carrier
Factoring company bank
Importer
1-Implementation of the factoring contract between the exporter and the factoring company.
The Adherent exporter (contracted with the factoring company)
2-Approval request
Contract negotiation
Factoring company
Commercial contract negotiation
3-Contract
Contract negotiation
Preparing the goods
Carrier
4-Delivery of the goods with an invoice noting the payment that must be made by the importer to the factoring company.
Importer
The exporter invoices its client
5-Invoice
6-Receivable assignment
Factor
7-Cash advance
The exporter is credited, and its receivable is guaranteed by the factor
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