Operation

The factoring contract, which includes the general provisions, is signed between Pamuk Factoring and the seller.

If any, a copy of the sale contract which is signed between the seller company and the dealer is sent to Pamuk Factoring for the purpose of determining the workflow conditions.

A protocol, which includes the workflow of the of the project, is signed between Pamuk Factoring, seller company and the dealer.

The seller company conveys all of the invoices issued to the dealer and all of the return invoices which are issued by the dealer to Pamuk Factoring.

In accordance with the request of the seller company, the payment could be made to the seller company after issuing the invoice.

The invoice collection is followed by Pamuk Factoring. In case the dealer makes the payment on due date, then only the factoring fee formed beginning from the date of using the prepayment and the due date is invoiced to the seller company.

If the dealer fails to make payment on due date, then the account of the dealer is debited. That is to say, the seller company makes the invoice collection on due date. As the dealer makes payment, it is credited to the account of the dealer and the factoring fee is calculated on the remainder amount in the end of the day (procedural method) and then invoiced to the dealer.

If there is any discount which is applied in the event the dealer makes payment before the due date, it is exactly reflected in the account of the dealer.

The dealer sends the copies of the return invoices which are issued to the seller relating to the discount amounts to Pamuk Factoring.

Advantages in terms of the seller company

The cash flow is regulated because the invoice amounts will be paid by Pamuk Factoring on the determined terms.

The work burden on the company will reduce because the follow-up and collection of the invoices will be followed by Pamuk Factoring.

The time receivables are taken out of the balance sheet when the prepayment is used; consequently it becomes more liquid. The receivable transfer speed increases. Because the factoring transaction is not a credit, the financing which is provided by Pamuk Factoring enters the assets of the balance sheet only.

The periodical intelligence and risk examination to be performed relating to the dealers will make contribution to the risk follow-up of the seller company.

Advantages in terms of the dealer

It will be able to find financing easily and in appropriate costs by means of benefiting from the credibility of the seller company without entering the search for additional financing in case it will not have the sufficient cash when the payment becomes due.

The factoring fee is lower than the current term differences in the market in any case. This will decrease the funding cost whenever the dealer needs financing.

Several important points...

Conveying all of the invoices which are issued to the dealer which is involved in the collection management system and all of the return invoices which are issued by the dealer to Pamuk Factoring is compulsory in terms of following the accounts in a sound manner.

The payment conditions and methods agreed with the dealer (such as check, wire transfer, etc.) will be defined in the account of each dealer. Pamuk Factoring should be notified of any change in these conditions in advance.

The collection management is a system which could be configured according to the dealer structure and system of each company. The above-mentioned operation describes only mainlines of this system.