The legal transfer of a receivable together with its obligations from the creditor (assignor) to another party (assignee).
A general assignment notice which is sent to the buyer when the factoring transaction is started for a buyer between the factoring company and the seller.
Certificate of Insolvency
The official document issued by the execution office indicating that the debtor does not have sufficient assets to pay the receivables subjecting of legal proceedings.
The management of the receivables by following and collecting the receivables on the due date, and by reporting the same to the customer.
A cost that is calculated over the receivables assigned and that varies by the volume of transaction and the due date of receivables.
The factoring transaction in which the amounts of the sales, made by the firms resident in Turkey to abroad, are paid to the seller before the due date. Depending on the country of the buyer, the guarantee service is also provided additionally to the financing upon the request of the exporter.
A financial instrument in which at least one of the guarantee, collection and/or financing services is provided to the seller firm upon the assignment of current or future receivables arising from the sales of goods or services.
The agreement which is entered by and between the customer and the factor, and which determines the conditions and the legal framework of the factoring transactions.
Factoring with Notification
The type of factoring where the seller firm notifies the factoring company of the fact that it has assigned its receivables arising from its post-dated sales to the factoring company. In this case, the debtor firm pays the invoice amount to the factoring company.
Factoring without Notification
The type of factoring where the seller firm does not notify the factoring company of the fact that it has assigned its receivables arising from its post-dated sales to the factoring company. In this case, the seller firm collects the amount of invoices itself and pays the same to the factoring company.
FCI (Factors Chain International)
The international association that determines the operation rules of the international factoring transactions and that has more than 450 members around the world comprising of factoring companies and banks.
The advance payment of a certain ratio of the post-dated receivables to the customer (seller firm) before the due date.
The guarantee of receivables against the risk of the insolvency of the buyer firm and the undertaking of the risk of non-payment by the debtor by the factoring company.
The type of financing in which the financing of the purchase of goods/services, made by the firms in Turkey from abroad, is provided by the factoring company.
The incapacity of the debtor to pay its debts despite the due date of the debt.
The cost incurred in case of benefiting from the financing service. It is determined based on the transaction type and the current conditions.
The undertaking of the risk of non-payment of receivables by the factoring company. If the factoring company cannot collect receivables from the debtor, it will not ask the seller to return the advance payment made.
Limit Authorization Notice
A notice which is sent by the factoring company to the customer to operate the factoring guarantee provisions in accordance with the provisions of the factoring agreement, and which specifies the guarantee limit and guarantee periods applicable to the debtor and the receivables guaranteed.
Receivable Notification Form
The document in which the receivables (invoices) assigned by virtue of the factoring agreement are itemized.
The type of factoring in which the factoring company does not undertake the risk of non-payment of receivables and in case the receivables are not paid, the factoring company is entitled to recourse to the seller firm and to ask it to return the advance payment made.
The costs such as EFT, transfer, cheque-note, upfront fee, etc.
Congratulations! Your registration has been received.
We are sad! An error has occurred please try again!