FREQUENTLY ASKED QUESTIONS

Who can use Factoring transactions?

It is a finance technique from which firms can benefit which sell within the country and abroad.

Is there a difference between Factoring and Bank Loans? Can Banks provide the same service?

There is difference between bank loans and factoring in terms of accounting technique. Bank loans are included within debits item, in contrast to factoring obligations which are included in the sellers item. In the event that the factoring transaction held is non-recourseable, then the transaction may be entirely off-balance sheet. This brings about positive effects on the balance sheets of the firms.

What are Factoring costs?

• Commission rates are determined distinctly for each customer in view of the characteristics of transactions.
• Interest is paid in the transactions where preliminary payment is used, interest amount is revised daily according to the market conditions.

May transactions be subject to factoring for which commodities are not delivered or no invoice is issued?

Receivables that arise from good and service sales should be subject to factoring transaction.

Which receivables cannot be assigned?

Assignment cannot be made in sales related to buyers with a prohibition on assignment, where there is mutual trade in question with the debtor firm and in transactions where there is partnership bond with the firm sale is made to.