How Does Factoring Work?
1) Demand for goods/services
2) Request for factoring service
3) Credit cover request for the buyer from the import factor
4) Credit assessment response
5) Sharing the credit decision and setting up the terms of working policy
6) Sending the invoice with the assignment label on
7) Sendin a copy of the original invoice with the assignment label on.
8) Pre-payment to the seller over the rate agreed upon (usually %80)
9) Payment to the IF on the due date of the invoice
10) Transferring the funds to EF
11) Balance Payment of the invoice to the seller.