Factoring is the trading of trade accounts receivable. With a factor that accepts purchase of accounts receivable in the form of invoices From the seller The seller will transfer the account receivable rights arising from the sale of the product to the factoring company. At the same time, the factoring company will pay the seller the right to transfer the accounts receivable. Such trade provided by the factor company may be paid in full or in part as agreed. At the same time, they will charge discounts and fees for the management of accounts receivable. Control debt collection according to the account upon maturity and be responsible for bad debts according to the value of the sale of the product as a potential credit.
Factoring has 3 parties involved
1. The company that buys debtors is called factoring companies or may be called factoring companies.
2. The company selling the product, believing money and selling the debtor resulting from the sale of the money product is believed to be called the client.
3. The company that buys silver products And is a debtor that will be sold to the factory, called Wa.
The fact that the factoring process is short, about 7-180 days
Service of Factoring companies can be divided into 2 levels:
1. Domestic Service Level (Domestic Factoring) In this case, the buyer and seller will be in the same country.
2. Service level international (International Factoring) where buyers and sellers of goods are located in different countries
• Able to record credit request form Factoring in the factoring system, which is the company doing business to buy accounts receivable from suppliers or exporters with trust money system with buyers or importers. The company that does this factoring business will deduct the discount for interest and fees. In this system, the system can support 2 types of factoring systems: Demestic Factoring, which is the purchase of accounts receivable from domestic trade and International Factoring, which is the purchase of accounts receivable from foreign trade.
• Credit Limits of Client and Customer or Credit Check can be defined between Client and Customer.
• able to purchase accounts receivable, either as Invoice, Check, Contract, P / N or others
• can calculate and set various fees and can allow the system to automatically calculate various fees And the fair fee can be set as base on anything such as Base on Invoice Amount or Base on Advance Amount (fees such as Transaction Fee, Operation Fee, Collection Fee, Other Fee)
• able to make a refund for the client and can make a net settlement
• Support for Rebate system and Pay Rebate
• Can set up Advance% for each customer
• Supporting the system to extend due of each invoice and additional interest (Extend Due)
• Support work with Broker system. Pay commission to Broker.
• Supporting interest rate for climbing the level according to the limit. For example, if using a credit line from 1-10,000,000 baht, use the interest rate of MRR + 2. 10,000,001-20 million million, use MRR + 4 interest rate, etc.
• Interest rate can be set for FIX Rate or Float Rate according to each bank.
• able to calculate or set fines or adjust fines
• Can connect the system to a separate account (BackOffice)
• can be assigned to access the system according to each user that has Authorized
• The system can work via the Web, such as the Client can key in their own Invoice via the Internet.
• The system supports EDI operation. For example, the system can retrieve Invoice data from clients from Tesco Lotus, Big C.
• can calculate and pay commission to Tesco Lotus or Big C
• The system supports recording Debit Note or Credit Note in the event that an event occurs.
• The system can lock invoices that have already been purchased, not to be bought repeatedly, and can set the Invoice Limit for each customer and client purchase.
• Supports various fees such as Transaction Fee, Operation Fee, Collection Fee, Invoice Limit Assignment, Tenor Determination, Retention Conditions (Deposit Collection)
• Support payment for Client with Baht Net system and e-Banking system
• Support to receive payments from Partial debtors (Debt deduction in full invoice)
• Supports multi-branch operations
• Revenue recognition reports, invoice outstanding reports, Aging Report and other reports
• There is a system to approve the request to increase the credit line in the event that each purchase exceeds the amount set by the credit limit.
• Credit limit system can be defined as Revolving Credit.
• In the event that the debtor fails to pay in full or in full amount, the system will be able to use the reserved funds to cut off the debt.
• On one purchase certificate of the client, the system can purchase multiple receivables at the same time on one purchase certificate.
• In order to pay to Client (Advance Payment), the system can pay the amount that Reserved included with that purchase.
• Tenor can be assigned to each client
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