Smart Benefits for the Effective Deals in Perfect Factoring Now

To cope with these difficulties one can resort to one of the most promising types of banking services, the most adapted to the modern processes of economic development, which is called factoring.One of the most promising types of banking services is factoring – a risky but highly profitable business, an effective tool of financial marketing, one of the forms of integrating banking operations that are most adapted to modern economic development processes. The term “factoring” from English is an intermediary, an agent.

Best Factoring for You Now

Factoring – the acquisition of the right to collect debts, to resell goods and services with subsequent receipt of payments on them. In this case, it is usually about short-term requirements. In other words, factoring is a kind of intermediary activity, in which the intermediary firm (factoring company) receives for a fee from the enterprise the right to collect and credit to its account the amounts due to it from buyers (the right to collect receivables). At the same time, the intermediary lends the client’s working capital and takes over its credit and currency risks. For a factoring company it is important now.

Great Deals for the Legislation Now

In the legislation, Factoring understand the contract of financing under the assignment of a monetary claim. A contract whereby one party (financial agent) transfers or undertakes to transfer money to another party (the client) against the monetary claim of the client (creditor) to a third party (the debtor) arising from the provision of goods by the client, performance of work or services to a third party, and the client concedes or undertakes to give this financial claim to the financial agent.

Obligations of the financial agent may include the maintenance for the client of accounting, as well as the provision to the client of other financial services related to monetary requirements, which are the subject of the assignment. As a financial agent, the company may enter into banks and other credit organizations, as well as other commercial organizations that have a permit (license) to carry out activities of this kind.

The Best Assignment

The subject of the assignment to which financing is provided may be either a monetary claim, the payment term for which has already come (the existing claim), and the right to receive cash that will arise in the future (future demand). The monetary claim that is the subject of the assignment must be defined in the contract of the client with the financial agent in such a way that it makes it possible to identify the existing demand at the time of the conclusion of the contract, and the future demand – not later than at the moment of its occurrence. This type of contract, widely used in international practice under the name “factoring”, was firstly secured in the Federation in the part of the second new Civil Code of the Federation.

 

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