Factoring in Short
This is a financial product through which time receivables of companies arising out of their domestic and overseas service sales are taken over by a factoring company to offer one or more of financing, guarantee and collection services.
With the financing service, billed trade receivables can be turned into cash at a certain rate of down payment.
The guarantee service provides guarantee to the supplier customer against the risk of non-payment of debts by buyers on due date by reason of insolvency or bankruptcy.
With the collection service, check or open account receivables of supplier customers are tracked and collected, and transferred to the customer along with customized reports.