Popular explanation of factoring business

Factoring refers to the contractual relationship between the seller, supplier or exporter and the factor. According to this contract, the seller, supplier or exporter will transfer their current or future accounts payable to the factor based on the goods sales or service contract signed with the buyer (debtor), and the factor will provide them with at least two services such as trade financing, sales ledger management, accounts receivable collection, credit risk control and bad debt guarantee.

Factors provide credit and credit management services for related commercial enterprises according to factoring contracts. Through continuous development, modern factoring companies have been able to provide a package of services, including providing credit investigation for buyers, commercial risk guarantee for 100% loans, accounts receivable management and financing.

Tips: The above contents are for reference only.

Response time: 2021-11-17. Please refer to the latest business changes announced by Ping An Bank in official website.