The purchase of accounts receivable namely factoring forms an essential business expertise of Ekspo Faktoring A.Ş. and involves the Company buying accounts receivable possessed by the seller (creditor) against the buyer (debtor) under the commercial contract; and meanwhile maintaining recourse to the debtor.
Benefits of Account Receivables Purchase:
• Stronger balance sheet structure
• Better management of assets
• Alternative way of raising funds
• Can enhance earnings by enabling proceeds to be reinvested into productive assets
• May assist with problems of capitalization
• Differs from factoring in that the relationship between the corporate and debtor is maintained
• Relatively simple to administer and operate
• Seller and Ekspo Faktoring enter into a Purchase Agreement
• Ekspo Faktoring purchases receivables periodically from Seller and pays cash
• On non-notification basis seller continue to collect receivables from the Obligor or on the notification basis buyer is notified of the assignment pay directly to Ekspo Faktoring A.Ş.