Exportation Factoring

The exportation could be a very stressful but at the same time profitable business. It is stressful in terms of the financing burden which increases in line with the dubious receivables, delayed payments, collections and the increase in the sales and the contingencies, and gainful because it could be very profitable.

The exportation factoring service, which we present you as Pamuk Factoring, solves most of these problems and makes an influence which increases your profitability.

Financing

We present the financing opportunity up to 80% of your invoice after loading your goods in your exportations against goods and also the remainder payment service after deducting our expenses when the customer payment is made.

Guarantee

We, as Pamuk Factoring, are a member of Factors Chain International (FCI) which has a network all over the world.

It means that we provide 100% guarantee against the receivables which could not be collected and arising from the bankruptcy of the buyer for our customers. You can now suggest your customers the opportunity of working as open account without any worry about the potential dubious receivables.

Collection

As part of the service which we provided you, we also undertake the collection follow-up of the receivables on due date. In presenting this service, we are benefiting from our FCI member correspondents which take part in the country of the buyer. We can overcome the problems resulting from the language differences, legal systems, time differences, cultural differences and similar other reasons by means of benefiting from the local correspondents.

Is it difficult to establish and carry out this system?

No. We simplified this process, consequently the decisions are taken in a shorter period of time. We describe the operation of the system as follows.

• First of all, the agreement is reached on the conditions and on the subject which customers will be credited. If the credit evaluation to be made for the buyer by our FCI correspondent is positive, then a guarantee limit is allocated to the related buyer.

• The factoring contract is signed between Pamuk Factoring and your company.

• You make your shipment as always and then send the invoice to your customer. The invoice includes a label stating that the receivable is conveyed to our FCI correspondent there and the payment will be made directly to our correspondent.

• A copy of the invoice is sent to us by you together with the shipment documents etc.

• When the due date of the invoice comes our FCI correspondent contacts the buyer to make sure that the payment is made.

• The buyer makes the payment to our FCI correspondent and that makes the payment to us without wasting any time. And, after that, we make the payment to you after deducting the expenses from 20% remainder.

• If your buyer fails to make the payment within ninety (90) days beginning from the due date, then we as Pamuk Factoring make 20% remainder payment which is in the coverage of the guarantee to you after deducting the expenses.

• It is obvious that this guarantee will not be valid in the rightful objections of the buyer relating to the commodity.

• This process continues to process as explained above when the new invoices are formed and sent to us.

Can the banks present the same service?

No. The exportation factoring service is a branch of specialization which requires special services and trained personnel. In addition to this, it requires the support of the other FCI members all over the world. The banks understood that this financial resource is not available in their branches and then some of them established the factoring companies which are specialized on this subject for the purpose of ensuring their customers to obtain the maximum benefit from the factoring service.

Is the exportation factoring better than the bank letter of credit?

Yes. The pricing is lower in comparison with the banks under the normal conditions. The exportation factoring is more flexible and easier than the letter of credit. Because the sales to be made as open account will be preferred by the importers, it will make your company more competitive in the international area. The exportation factoring is the unique composition of the financing, guarantee and collection services.

Costs

The pricing based on transaction is in question because each transaction is different than the other one. The expenses are composed of the service commission and the factoring fee. The service commission is determined in a certain percentage on the invoice value and it varies between 0.7% to 1.5% according to the dimension and characteristics of the business and the credit conditions. Because the crediting is made on the currency of the invoice, the factoring fee is determined as libor + spread on the interest rate of that currency.