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- Frequently Asked Question
- Term of the Week
Term of the Week – Factoring
Factoring is a form of Receivables Purchase, in which sellers of goods and services sell their receivables (represented by outstanding invoices) at a discount to a finance provider (commonly known as the ‘factor’). A key differentiator of Factoring is that typically the finance provider becomes responsible for managing the debtor
Term of the Week – Forfaiting
Forfaiting is a form of Receivables Purchase, consisting of the without recourse purchase of future payment obligations represented by financial instruments or payment obligations (normally in negotiable or transferable form), at a discount or at face value in return for a financing charge.
Term of the Week – Receivables Purchase
A convenient intermediate category of SCF techniques, which includes SCF techniques such as Receivables Discounting, Forfaiting, Factoring, and Payables Finance and includes a range of synonyms and variations.
FAQ – Pre-shipment Finance
Who are the parties involved in Pre-shipment Finance? A typical Pre-shipment financing transaction involves two main parties: the seller and the finance provider. The buyer is not a party to the financing transaction but depending on the contractual arrangement with the finance provider, the source of the repayment is usually
Term of the Week – Pre-shipment Finance
Pre-shipment Finance is a loan provided by a finance provider to a seller of goods and/or services for the sourcing, manufacture or conversion of raw materials or semi-finished goods into finished goods and/or services, which are then delivered to a buyer. You May Also Like:
FAQ – Loan or Advance Against Inventory
What are the Distinctive Features of a Loan or Advance against Inventory? Key Distinctive Features of a Loan or Advance against Inventory: You May Also Like:
Term of the Week – Loan or Advance Against Inventory
Loan or Advance Against Inventory is financing provided to a buyer or seller involved in a supply chain for the holding or warehousing of goods (either pre-sold, un-sold, or hedged) and over which the finance provider usually takes a security interest or assignment of rights and exercises a measure of
FAQ – Distributor Finance
What are the benefits of Distributor Finance? Key benefits of Distributor Finance : • Working capital optimization permits the distributor to bridge the liquidity gap between the purchase of inventory and payments received from its customers. • Credit for distributors at a lower cost than what would be available from
