Financial Factoring is a contract that purchases the receivables arising from th e grocery goods or services.

FINANCIAL FACTORING RATES Factoring By Issuer Suppo rt Providers refactoring International Factoring Factoring Factoring Appeal With New Style 100 Factoring Factoring Factoring With Executive Collection Al Hol Ni ner Expiration Factoring Factoring Factoring Business Without Notice modalities can be: Factoring Factoring With No Resources Resource Type : Executive Direct b enefits are: • Solve immediate settlement. • Get immediate resources without awa iting expiry of the document. • Increase cash flow, without loading additional l iabilities. THE FACTORING AND REQUIREMENTS • Have checking account. • The individuals and co rporations engaged in ind. com. serv. documenting their sales and / or purchases on credit. • Suscrivir financial factoring contract. • The documents give dever come from commercial operation • Devera stick to the outcome of the review of t he credit also to consider the moral, financial situation, ability to pay and qu alitative aspects of the applicant, as well as delivery of information in each i f applicable. Note: The requirements cited in each type of credit are but is not limited. Financial factoring companies are those limited companies, authorized by SHCP to finance accounts receivable, collection providing professional servic es, research, credit analysis. The importance of these enterprises is that they play in the Mexican system a major non-bank intermediation function, aimed at fi nancing the business by acquiring the right to credit, which are based at the co mmissary goods and services. This function is mainly developed for small and med ium enterprises. Financial factoring companies are autorise to provide various types of services: Factoring without recourse to the mechanics of operation of this type of factor ing is virtually the same as that of factoring with recourse with the only diffe rence is that first purchase of documents because no charge, represented by invo ices against one receives, credit, etc. A factor entity charged immediately chan ge these documents. The pure kind of factoring and rarely used in Mexico by an e ntity bearing the risks of default factor and the decision on the risk will have to be assessed as to the documents. b) Factoring with resources is the most pra cticed in Mexico is that an entity sells its portfolio of customers or notes rec eivable, represented unmatured bills against receipts, credit title, an entity i n exchange for cash factor such documents for to continue producing and not have to wait for your client or buyer to pay the debt. c) Factoring, this will give those entities that are suppliers to large public and private companies such as strings of cars, service, department stores, and those who handle a variety of s uppliers and that at some point require liquids . a) ADVANTAGES AND DISADVANTAGES OF FINANCIAL FACTORING Advantages • Eliminates the problem of lack of liquids. • Leveling cash flow. • Equalization inventories. • Reduced operating costs. • Obtained information of high credit quality. • Do not generate liabilities. • Greater freedom in selecting suppliers. • The ready ava ilability of financing without increasing liabilities of the company. • Greater liquids that can take advantage of opportunities. • Reducing the work of collect ion and support the work of analysis. Disadvantages • Lack of use due to ignoran ce. • The financing of accounts receivable is cost. • limited geographic coverag e. • The selectivity of the documents by the company factor provides no reductio n in collection costs. MECHANICS OF USE The shrinking process may vary according to the policies and wo rking methods of each entity factor. The documentation required is also variable , which is a legal and financial status to determine the risk of operation. The procedure to start this operation the company at that stage called prospectus on ly required to answer the request lines to the institution of your choice factor attaching the documentation they require. RECRUITMENT RULES financial factoring companies can enter into contracts and sign the same factor if the company acqu

ires the obligation to respect the line of credit for the period specified provi ded that the leaflet also called seated meets the stipulations set out therein,€ The purpose of this contract is to document the line factoring contract requires the signature of q is taken powers for acts of ownership. Allows you to exercis e every line imposition of factoring, serving as an annex of the contract of ple dge of factoring, which identifies the characteristics of the documents transfer red. Notification is a legal element that enhances the transfer of receivables f rom third parties. The funding source of funds for factoring companies is the ba nk fund. This offers an advantage for companies that are tied to a bank. International Factoring International factoring there are three types: Direct Fa ctoring Factoring companies in Red Rules Of Factoring Factoring Inter 1 - can on ly celebrate autorise companies for this purpose. 2 - Only be held factoring on accounts receivable arising from sale of goods or services. 3 - They can only ob ject of this operation (factor) accounts that are not expired and that they are covered by: * Invoices * Against Credit receipts * Titles * Any other documents that establish the rights 4 - Under the terms of the contract, the company owns accounts receivable may or may not obliged to pay such timely and appropriate. 5 - Financial Factoring is regulated by the General Law of Organizations and Auxi liary Credit Activities "(from Article 45-A 45-t) Example 1: To register a transfer of accounts receivable to financial factoring company when there is no liability to pay, would be as follows. Banks Banamex Financial expenses Clients Name "" $ Xxxxx xxxxx xxxxx xxxxx $ XXXX $ xxxxxxx Example 2: For the transfer of uncollectible accounts to financial factoring com pany when there is accountability. Banks Banamex Financial Factoring $ xxxx $ xxx Example 3: To record the timely control of accounts receivable is no liability t o pay, stay. Financial expenses Financial Factoring Customers $ Xxxx $ xxxx xxxx The companies not only generate receivables arising from transactions or debits sales workers afavor amounts of contributions (expenditures made to the governme nt for contribution public spending) in other expenses are just too important loans from other compa nies or financial transactions that enables them to gain the resources that will not be used for the time of operation. For this type of operation is desirable to organize legal instruments that give greater certainty about the recovery. Th e instruments to formalize are credit instruments (letters of credit).