The debtor pays the factor’s fee, making the terms transparent and predictable.
Agency Factoring (Reverse Factoring)
Import Agency Factoring
Repayment to the Factor
The debtor repays the funds to the factor with a deferred payment, as agreed between the parties; the supplier does not participate in the settlement.
Supplier Financing
The factor provides funds to suppliers, including advance payments, on behalf of the debtor based on the debtor’s order register.
Direct Agreement
Concluded between the debtor and the factor.
Financing of Foreign Suppliers
The factor provides funds to non-resident suppliers on behalf of the resident debtor, ensuring timely settlements.
Currency Transactions
Payments can be made in foreign currency, simplifying international settlements.
Agreement with the Debtor
The factoring agreement is concluded between the factor and the debtor (resident buyer) who works with non-resident suppliers. Based on the buyer’s instructions, financing is transferred to non-resident suppliers in rubles or foreign currency according to the supplier contract. Advance payments to suppliers are possible. Flexible deferred repayment terms are arranged with the factor.
Currency Risks
With this type of factoring, the debtor eliminates currency risks, since the exchange rate is fixed on the payment date by the factor to the supplier, while the debtor repays the obligation to the factor in rubles.
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We will prepare an agreement with individual terms.
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Settlements with Suppliers
Based on the buyer’s instructions, the factor makes payments to suppliers on behalf of the buyer under the terms of the supply contract, including advance payments.
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Procurement Agreement
The buyer signs a procurement agreement with suppliers for goods, works, or services with any payment terms — deferred payment, payment upon delivery, full or partial prepayment.
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Payment to the Factor
The buyer pays the factor for the supply (goods, works, services) with a deferred payment term agreed with the factor.
How Buyer Factoring Works
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Agency Factoring Agreement
The buyer enters into a factoring agreement with the factor.
PARTNERSHIP SCHEME OF WORK
Extend the payment deferral under the supply contract free of charge for up to an additional 180 calendar days (grace period), thereby reducing the burden on working capital.
Increase turnover (orders), as factoring provides the supplier with quick access to financing and enables them to meet the declared supply volumes.
Gain an additional source of income: for referring suppliers to us for factoring, the factor may pay the debtor a commission.
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Under the agency factoring scheme, the factor signs a contract with the buyer of goods, works, or services. The factor makes payments on behalf of the buyer to their suppliers upon the buyer’s instruction. The debtor may instruct the factor to pay suppliers both advance payments and payments for actual deliveries of goods. In this scheme, the factor acts as a payment agent on behalf of the debtor.
Yes, they can.
The contract is signed with the buyer, not with the suppliers. The factor makes payments to suppliers instead of the buyer, and the buyer (debtor) pays the factor’s commission (fee).