Businesses can convert their future receivables into cash by assigning them to Garanti Factoring without any need to wait for the maturity dates of their future receivables and can meet their requirements for business capital.
As they are able to provide their buyers with the chance of maturity, their capability of competence in the market shall increase.
Factoring activates only the real asset side of the balance sheet; however the turnover ratio of receivables increases, therefore the ratio of balance sheet liquidity ratios also increases.
They receive discounts in cash purchases of raw material and products with the liquidity they provide; costs are reduced.
Businesses provide the required finance using their own commercial receivables; therefore, need for foreign sources decreases.
According to the reliable intelligence results; businesses possess up-to-date information related to financial status of their buyers.
Transferring of receivables to Garanti Factoring, tracking and realization of collection are performed by Garanti Factoring; hence, businesses will not have to employ personnel charged with collection.
Businesses that cannot receive sufficient credit limitations from the bank as they cannot produce warranties such as customers' cheques or bonds may provide financing by transferring their open account sales made to buyers with high credibilit.
Businesses guarantee their receivables arising from their open account exports against the risk of purchase to fall in insolvency and bankruptcy. Therefore; their capacity of competition in the current market increases; so that they can approach to new markets in a more reliable manner thanks to the wide network of correspondents of Garanti Factoring.
They are informed about the up-to-date status of their existing and potential customers. They can be faster and more effective in their decisions to be taken about new business opportunities.
With our correspondents residing abroad, any probable problems regarding languages and regulation can be overcome easily.
Businesses may have the Foreign Exchange Purchase Certificate issued during the use of factoring finance and apply for the VAT refund earlier.
Factoring finance does not create any commitment, but causes existing contractions to be closed.
In Factoring system, Buyers abroad who realize their purchases as cash-against-goods are released from accreditation. They make their payments to the correspondent Factoring Company in their own country and therefore they save time and money; and so their purchasing power increases.
As all of the payments in import factoring transactions are paid to the company in the foreign currency stated on the invoice, no expense for any exchange rate occurs.
Businesses can perform their imports by means of factoring; thus they benefit from all advantages of an advance-paid importing.
The risk of exchange rate does not exist for companies performing import factoring; this is because all payments in import factoring transactions are paid in foreign currency on the invoice.
