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Factoring is a short term financial instrument which is based on the conveyance of the short term receivables resulting from the domestic or international sales of the companies.
The necessary conditions should be present for a transaction to be considered as factoring:
     
 
An invoice which includes the description, amount and payment term information of the products or services to be subject of the conveyance.
 
If the subject of the sale is product; then delivering the products to the buyer by the seller.
 
If the subject of the sale is service; then having completed the mentioned service.
 
Conveying this invoice to a factoring company by the seller before its due date and benefiting from at least one of the factoring services.



 
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