All businesses dealing with domestic and international invoiced trading can benefit from our services. There are no criteria in terms of any balance sheet or any endorsement fact.
Published Tuesday, October 10, 2006, with Number 26315 on "Resmi Gazete" (Official Gazette) "Regulations on the Establishment and Activities of the Financial Leasing, Factoring and Finance Companies " text can be read here. (in Turkish)
Financing: It is the payment of a specified ratio of receivables –which is assigned to the Factoring company– to the seller company prior to the maturity date. Guarantee: It is the guarantee that 100% of the invoice amount shall be paid if the debtor company fails to pay. Collection: It is tracking, collection and related reporting of receivables on behalf of the customer.
When you assign your receivables originating from future sales to Garanti Factoring, Garanti Factoring shall pay a specified percentage of the receivable amount to you.
The collection of the receivables assigned to it shall be performed by Garanti Factoring. It collects your receivables in a timely manner owing to its own expertise staff within the country and its wide network or correspondents abroad. It may also transfer information through the reports specially-designed for you if you wish.
Garanti Factoring undertakes the risk of failure in payment due to insolvency of buyer companies to which you have sold any products within guarantee limits obtained from its foreign correspondents. It shall pay the 100% of the invoice on the 90th day following the maturity date.
Guarantee limits shall be determined according to the financial conditions of the buyers. The guarantee contracted by Garanti Factoring shall be valid under the conditions such as that the buyer is suffering from insolvency, bankruptcy, announcement of bankrupt’s certificate. The guarantee shall be invalid in the event of any defect in the goods (Reclaim).
The investigations are performed by means of correspondents of Garanti factoring outside the country; and of other finance institutions in collaboration with Garanti Factoring, inside the country.
Since you can receive a certain percentage of the invoice amount in advance by Factoring practice, you will have the possibility to grant the buyers an extension of maturity date without suffering from the lack of cash arising from the maturity date.
No, such a problem would not arise. On the contrary; since the advance payment you have received from Garanti Factoring has been paid by a foreign bank, it is processed as the export fee. You can have the Foreign Currency Purchase Certificate issued by closing out your contraction in any bank of your wish.
Due to the tax exemptions stated under Import Encouragement Communiqué, there are no taxes applied on Import transactions. In domestic factoring transactions; only factoring fee and commission is subject to BITT (Banking and Insurance Transactions Tax). No further tax is included except for the foregoing.
Yes. All of the sales that you will do with your buyers approved by Garanti Factoring must be performed by using factoring during the factoring contractual period.
Garanti Factoring will definitely get in contact with you prior to making any kind of transaction with regard to your buyers. The factoring methods collecting your receivables and providing you the necessary finance act parallel to the commercial agreements concluded between you and your buyers.
Very important. This is because when your buyers fall into insolvency, the factoring company which contracts you to pay you your receivables can only realize this contraction with its powerful resource structure.
Garanti Factoring is a member of FCI (Factors Chain International) and IFG (International Factors Group). Both organizations are the association of international factoring companies providing the information flow between the factoring companies in the world and which performs the necessary regulations. Garanti Factoring is the only factoring company in Turkey which is a full member of both groups.
Since your receivables sourcing from future sales are converted into cash by factoring transaction, your ratio of liquidity increases. Factoring financing, unlike bank credits, does not take place on the liability side of your balance sheet.
In case the customer falls into insolvency or in case of a delayed payment, the entire of your invoice amount will be paid on the 90th day following the maturity date in the foreign currency stated on the invoice unless a valid conflict period has been guaranteed.
Yes, you do the import connections; we will pay the invoice amount to the exporter upon the delivery of the goods to the customs. At the end of the maturity date we grant to you, you make a return payment to Garanti factoring. Therefore you both grant a maturity date to your company and also benefit from all advantages of an advance-paid import.
