Factoring business process:
(1) The seller shall submit the company's relevant information to the bank, submit the authorization for inquiring the company's and individual's credit records, open an ordinary account in the bank, apply for the credit line from the bank, and submit the relevant information to the guarantee company at the same time.
② The bank evaluates the seller's credit and approves the credit limit;
(3) After the seller and the buyer complete the delivery inspection and form effective flawless creditor's rights, they sign factoring business elements with the bank (including loan application, factoring contract, accounts receivable transfer list, accounts receivable creditor's rights transfer notice, entrusted payment agreement, letter of guarantee, downstream enterprise accounts payable and term confirmation, commitment letter, etc.). ); Provide sales contracts with downstream enterprises, bills of lading, value-added tax invoices of sellers, letters from downstream enterprises confirming accounts payable and deadlines, annual and monthly business licenses of downstream enterprises, collection documents, etc. At the same time, the seller, the counter-guarantor and the guarantee company sign the guarantee elements (including the guarantee application, the joint guarantee commitment letter, the resolution of the shareholders' meeting, the guarantee agreement and the counter-guarantee contract).
(4) After the guarantee company passes the examination and approval, it will sign the guarantee requirements with the bank.
⑤ When the bank approves the loan, the seller will remit the bank deposit and the guarantee company deposit to the designated account, and pay the factoring fee, guarantee fee and financial consulting fee at the same time.
The bank lends money to the seller, and the seller pays the money to the upstream enterprise of the seller.
⑦ After obtaining the financing, the seller shall pay the interest on time as agreed in the letter of commitment, do a good job of statement and month-end deposit, and provide the statements of downstream enterprises and other information as required by the bank.
(8) After the financing expires, the downstream enterprises shall fulfill their repayment obligations. If the downstream enterprise fails to repay in full and on time, the seller shall fulfill the repayment obligation.
Question 2: What does the bank mean by "re-factoring"? What is the difference between factoring and factoring? Factoring refers to the contractual relationship between the seller, supplier or exporter and the factor. According to this contract, the seller, supplier or exporter will transfer their current or future accounts receivable based on the goods sales or service contract signed with the buyer (debtor) to the factor, and the factor will provide them with at least two services such as trade financing, sales ledger management, accounts receivable collection, credit risk control and bad debt guarantee.
Re-factoring business is equivalent to secondary factoring business, that is, the seller transfers the accounts receivable to the factor or bank, and the factor or bank transfers the accounts receivable to other factors or banks. For example, the international double factoring business is a re-factoring business.
In practice, there are many different ways to operate factoring business. Generally can be divided into: recourse factoring and non-recourse factoring; Dominant factor decomposition and recessive factor decomposition; Discount factoring and maturity factoring
Question 3: What kind of business is bank factoring? It means that the factor buys the accounts receivable with the buyer as the debtor from the seller, and provides comprehensive after-sales services in bad debt guarantee, including trade financing services, sales ledger management, accounts receivable collection and credit risk control. 1) Business license after annual inspection 2) Approval for export business 3) Copy of invoice with transfer conditions (payment terms are generally O/A or D/A, and the term cannot be too long. Every bank has its own rules. I think it's usually 90 days, and it can't exceed 180 days at most, but it's not that simple. You didn't sell the goods and go to the bank to apply for this. Generally, you should talk it over with the bank before selling goods, saying that you want to do this business, who is the importer, the bank should think that the importer is more reliable, and you are also their important customer (at least you have to open a basic deposit account or general account with this bank and have done some international business before), and you will initially agree to do this business for you, and then there are some internal processes to go, such as applying for credit from the importer, and you will be informed after the application is completed. Then you sell things and take the materials to do factoring business, and the person who wants you to take the materials to the bank will also tell you. So I think, if you want to do this business, you should ask your bank first, hehe.
Question 4: What is factoring? Factoring refers to the transfer of current or future accounts receivable claims by an enterprise to a bank based on a sales contract with a customer (buyer), and the bank provides the buyer with comprehensive financial services such as credit risk guarantee, financing, account management and accounts receivable collection service. As a product of trade financing, factoring is flexible, efficient and professional, which can solve the problems of financing difficulties and weak risk management ability of small and medium-sized enterprises.
For enterprises, through factoring business, they can convert their accounts receivable into cash in advance and obtain financing from banks in advance after delivery. Within the amount approved by the factor, they can apply for prepayment financing up to 80% of the invoice amount and convert the accounts receivable into cash in time, thus improving the efficiency of capital utilization.
At the same time, enterprises can also avoid the buyer's payment risk through factoring. After the bank provides the buyer's credit risk guarantee for the enterprise's accounts receivable, if the buyer is unable to pay due to credit factors, the bank will perform the payment, and the creditor's rights can be guaranteed by 100%.
For banks, factoring can make them get more benefits. As an intermediary service, factoring can get higher service commission. Factoring fees can be charged one by one or in combination according to the buyer's credit risk guarantee, collection, credit review and financing provided by the enterprise, usually 0.5% ~ 2% of the invoice amount, and financing interest is also charged when financing is provided.
Question 5: What is bank factoring? The factoring business of banks can be divided into domestic factoring business and foreign factoring business.
The popular point of domestic factoring business will also be called accounts receivable financing, which means that the company will transfer your accounts receivable to the bank to obtain funds in advance after passing the bank's audit. According to different types, it can be divided into buyout factoring and repurchase factoring. The audit point of factoring bank is mainly to audit the repayment ability of the debtor (that is, the company that owes money to the company).
Foreign factoring business is mainly a financial product designed according to the import and export business of import and export enterprises, and its main function is to let import and export enterprises obtain funds in advance. Specific products include packaged loans, invoice discounting and so on.
Question 6: What does international export factoring mean? Why is it called factoring? According to the definition of international factoring convention, factoring refers to the existence of a contractual relationship between the seller, supplier or exporter and the factor. According to this contract, the seller, supplier or exporter will transfer their current or future accounts receivable to the factor according to the goods sales or service contract signed with the buyer (debtor), and the factor will provide them with at least two services: trade financing, sales ledger management, accounts receivable collection, credit risk control and bad debt guarantee.
Domestic factoring means that under domestic trade, the factoring bank accepts the accounts receivable arising from selling goods or providing services to the buyer on credit at the request of the seller, and provides financial services such as trade financing, accounts receivable management and collection, and credit risk guarantee.
Question 7: What is bank factoring? The factoring business of banks can be divided into domestic factoring business and foreign factoring business.
The popular point of domestic factoring business will also be called accounts receivable financing, which means that the company will transfer your accounts receivable to the bank to obtain funds in advance after passing the bank's audit. According to different types, it can be divided into buyout factoring and repurchase factoring. The audit point of factoring bank is mainly to audit the repayment ability of the debtor (that is, the company that owes money to the company).
Foreign factoring business is mainly a financial product designed according to the import and export business of import and export enterprises, and its main function is to let import and export enterprises obtain funds in advance. Specific products include packaged loans, invoice discounting and so on.
In practice, there are many different ways to operate factoring business. Generally, it can be divided into: recourse and recourse factoring; Dominant factor decomposition and recessive factor decomposition; Discount factoring and maturity factoring
(1) recourse factoring and non-recourse factoring
Recourse factoring means that the supplier transfers the creditor's rights of accounts receivable to the bank (that is, the factor). After the supplier receives the payment, if the buyer refuses to pay or is unable to pay, the factor has the right to recover from the supplier and demand repayment of the prepaid monetary funds. At present, due to the principle of prudence, in order to reduce the possible losses in the future, banks usually provide customers with factoring business with recourse.
On the other hand, non-recourse factoring is the risk that the buyer refuses to pay or is unable to pay. After the supplier and the factor carry out the factoring business, it is equivalent to transferring all risks to the bank. Because the risk is too high, banks generally don't accept it.
(2) Explicit factoring and implicit factoring
Explicit factoring and implicit factoring are distinguished according to whether the buyer is informed of the factoring business.
Explicit factoring means that the supplier should immediately inform the buyer of the factoring situation when the creditor's rights are transferred, and instruct the buyer to pay the goods directly to the factor.
Implicit factoring means that the buyer is excluded from the factoring business, and the bank and the supplier carry out the factoring business separately. After the expiration, the supplier will come forward to ask for payment and then hand it over to the factor. Suppliers can cover up their poor financial situation by secret factoring.
(3) Discount factoring and maturity factoring.
Discount factoring, also known as financing factoring, means that when the exporter gives the bills representing the accounts receivable to the factor, the factor immediately provides the exporter with no more than 80% of the prepaid accounts receivable financing, and the remaining 20% of the accounts receivable will be settled after the factor collects all the payment from the debtor (importer). This is a typical factoring method.
Maturity factoring means that the factor does not provide financing to the exporter when receiving the documents submitted by the exporter (such as sales invoices representing accounts receivable), but pays the payment to the exporter after the documents expire. Regardless of whether the payment can be received at that time, the factor must pay the money.
Question 8: What is factoring? Factoring, also known as secured payment agent and secured collection payment, is a way for exporters to ask the third party (factor) to bear the risk in order to avoid the risk of collection when settling loans by collection or credit sale in trade. Factoring is a comprehensive financial service that integrates trade financing, commercial credit investigation, accounts receivable management and credit risk taking. Compared with the traditional settlement method, the advantage of factoring business mainly lies in the financing function. Factors provide at least the following two services:
trade financing
The factor can provide financing to the seller immediately after receiving the transferred accounts receivable according to the seller's capital demand and help the seller solve the liquidity shortage problem.
Sales accounting subject management
According to the requirements of the seller, the factor can regularly provide the seller with the collection of accounts receivable, overdue accounts, aging analysis, etc. And send various reports to assist the seller in sales management.
Collection of accounts receivable
Factors have professional collection personnel, who will take reasonable, powerful and economical measures according to the overdue time of accounts receivable to help sellers collect accounts safely.
Credit risk control and bad debt guarantee
The factor can verify the credit line for the buyer according to the seller's demand, and provide 100% bad debt guarantee for the accounts receivable generated by the seller's shipment within the credit line.
Question 9: What is commercial factoring?
Simply put, the seller sells the goods to the buyer, and the seller can transfer the accounts receivable arising from the sales or contract in the course of trade to the factoring company, and then the factoring company will provide the seller with cash flow in advance for procurement and production, so as to avoid the capital turnover problem of the enterprise during the period from the generation of accounts receivable to the recovery. Commercial factoring is a mysterious industry with many trade secrets. "Engaged in accounts receivable business involves many industries, and all enterprises involved in trade credit sales will need factoring companies." With the development of the market, credit sales are becoming more and more common in transactions, which has laid a good market foundation for the development of factoring business.