For twenty years in our country carried out factoring operations.They represent a transaction of sale the supplier, who is also a creditor, the right to receive from the borrower's debt.The objects of such a relationship may make the goods or services, as well as securities for which payment has not been made.
Factoring transactions are beneficial to all parties, as they allow the supplier to obtain the debt now, though not in full.Between the bank and the creditor is an agreement under which the first buyer pays the debt in the amount of 80-90% of the total and is entitled to recover the debt in full in the future.Economic profit credit institution makes a difference of 10-20%, called a discount.In some cases, terms of the contract require full reimbursement of the debt to the creditor, and the bank in turn receives a commission, the amount of which is stipulated in a bilateral agreement.
Factoring Bank can be classified by type.One of the most common is considered domestic factoring, that is, the operation for the acquisition of the right to claim the residents of the country.If one of the parties to the transaction is a citizen of another country, then we can talk about the international format.When you open a factoring transaction the borrower will be notified of the transfer of rights to collect debt in favor of the bank.Confidential or hidden view is carried out without the knowledge of the debtor of the transfer of rights requirements.Such a deal would be much more expensive.The payer transfers funds in the amount payable to the account of the client, which then gives the money to the bank in the amount prescribed by contractual arrangement.
practice shared factoring operations with recourse and without it.In the first type of bank can cancel the transaction with the supplier and to return him the right to claim in case of failure to repay the buyer.If surgery is performed without recourse, that factor can not require the lender's outstanding debt repayment.Of course, in most cases it is preferred first type of transactions, as this reduces the level of bank risk.As a rule, bezregressovye operations are carried out, when the borrower is solvent entity with stable financial position.
Factoring transactions of commercial banks are becoming increasingly popular, as they allow to compensate a temporary shortage of working capital in the current activity of economic entities.And in terms of the unavailability of credit, for example, when banks refuse for one reason or another, factoring becomes a kind of panacea that ensures equity.However, the credit institution is not always agrees to enter into such a transaction.In considering the application management of the bank scrutinizes the solvency of the debtor, its credit history, the demand of products on the market and the possibility of its implementation in a short period of time.It is fairly laborious and large-scale work and this shows the similarity of factoring and credit.
Often the bank is forced to deny the supplier, if the borrower has large debts to various creditors, or in the case of speculative activity.Also factoring companies are not at risk to acquire the right to claim debt from a legal entity, engaged in production of non-specific products or having orientation to a narrow audience of consumers.
Factoring in today's financial market of our country are held almost at the same level as in the European markets of international scope.And that attracts more foreign investors, who have large sums of money than, unfortunately, can not boast of domestic producers.
