Ait Gree Steel PF acteriag O Bont or specialised financial Pic” OG Per gormS Rioancng rough +ne Porchase Ch IMCICRS OF ACELoUNt PreCeNiChIe - ( Foduralanny yada alacat heseplown yoy!) Riransme saqlayo. 4er ——_—_— Q— @Pexport Pactoring & Factering is oppered urdela agreement beiween +e factory ond exporter” OG The factor perchases the exporters shoct — tec Pertiqgn accounts receivable_ CYaksna alaaak) PS? Cash at a discoum from the face yale, Witrat recaurse Lbaswure) > Nominal , meniev! aymestierdae a deperi Csenet waar yore) YOU the fector assumes +ne cist on abiltty OF tne Foreign buyer 4S POY, and nandtes CoatlecHons on 4+ne receivables GD macactacdat? tansitatHort idee eder C Para icin toplana gibi) *—_ Factors qererallyy @ Factoring Pro@s VY po mot tabi on a client for Q one Hae deal < ~ J Reaquie access to corto NOlume of He exporeS Setiing Ficm arly sales. LL ceo u——___—_1 " TIGL Copy " Ada paqmat CAvens ) ginal Poymer poe ee gt ee EE er ere | PFivancial_ packages (expat Factoring) wong ') Export “Capital PIDANCIND) Cinracat isichne se SMmor 2) Credit profeciod C crecti eS IRCR e 3) Fore ing account receivabiq, boo kkee ping ard cellection Services. ( Yue hist alacak. deer 4+ nat Ye tahsilot Niamesti) rye: @® ®rne eduontages o+ferecl oy +ho factor Othe eaetor etimincre. tro ASE Of NoNpaymot By RoeiQn buyers. 7 oo © Prextices Open Acceort Without ii © ienproves WeictteC liquidity) position (expodes) S increase campestitiv i eo Mpetihdenes ig tha Gicbal merkuiplace& Discount Factooeg Con OnOnrs\ vein) & tne Racor issues Cto give) an acvanee, Of Luad& agaiast +he ex pPOCRIS reconabes UORI the money collecteel Prom Imnpente & para 4tahsil edilincye badar alacadlarm karsi on +e avons: vediIMesi C Factor FaQraPpindr G Cast is variable depend on Hme frond Cae and dollar amount adun@d G Vari” male 2ormN Tit entog we doar tutous leap olaralc depisen Re ® Acvovtoge S Y Recenmend Lor shor+—term export sales Of Consumer goods on Open Account}, DO if ciSe of Nonpayment by fEeign buyers Pranide. % 400 provechon. GYakmA aa tarapinder Sdenmenes! bore — monda YACO koruma Salar. © Wis attractiue option small ond mecivm Sided busineSS. (Becauvs. Cash flow 1S preserved or prowcied) and rue eliminated, OG ortadan fo\var ve nalat auge\ Forumer Cetodk ve ora diaey jsletmeler a\ @ Collection Foctoriag Gansilet porcrodngh ) G Regardless oF the importers pincncial ability to POY, HH GaYyS the exporter \esS Comission fee when the receivalees Ore doe us Yan bu pays the exporter less eer fee ( Regardless Of tne imporcier’S Piacnrcial Aleitity ) BD trararcanin deme rfeltgetiea Letalenokaty) daha oF Komisyn SdemEs- & +ne Cost fixed / raging gererallt peraant C depend On ~Coumry / Sales Volume and amount oF Papermvork inclved » Aomd y 4 (rule) export factoring is LSvalty twee as much AS expat cred Insvrarce G thraco+ faltering’ , inracad SigqactaS! kredisinin ik; catadi. (Genetic! 2) - © Nienitations ap expat Factoring “& om 2xiSr in Countrles With laws +hoat- Svppat the boyiag, and setting, ot FERIUABLS - 1 O Pees not work with core acueaunr CeCRiiobles hart qncader nan 15D cay ¢ +ermS CiEO Qsedon Om vadeli Alacatlilarla Calsnn b for expoders wrtn norrow Profit Marais, tine, CoSk Can be. promibitie amaa @ For paiting — 6 is the Porchate Of aN exporier& reazivialaleS — the amount thot +he importer Owes +O 2x pocke~ — af Q discount by Peyicg cash & Hrhalatcunin ihracodarw loorq to Oldsgu totann nakit Sdeyer Vadicrmti Sofin Almasi Go most be paid by importer for the paymert OF +he clolst C The purchaser Of reccivalaes or forgeiter ) & Atocakt, worcn SdenMesi 1Ain thalatc | t+oragindor Sdenmesidic, 3 Expocter 2 —— Exporter Ww aes wh fe foreeik — Z BA NING, ”" Y nee ane io holt HL maturity > Sell +o QPP Of lavestocg > trode in secondery mart 3 this Common PTORSS Used for speeding Up tne Cash flav Cycle ad Prouidt rise Mmrhigatiod for +he. expocerh on B00 of tho depts waweBeyon ~S DAS tre rwceivabeS ao vsally Quareneatl By the importers bene, D forpaver prees the expocder pran the ris. oF NON Payment by +e IMpor der, © Forferer, HHracet Cus) i+haledaqu +taratindey Gdenmere riskinden levrtann S Forpeitec Perchasxs Priory purcdhakd. Cmean) & Receivalies +ecnically become GQ mean Of borrow 7 Can thea be Sach oA +0 Secondcy “macket+ Qs PFOMISTY NOES , this iS known as Secondary porcrase @ Alacakter felenic clerak ikineil Pyasadq SEMO4 Vet Cloak SoHIQkentk hale Ae =) iwincii aim olarak balinic, e@ —_——— ——____@& Ley difference between factering ond For paitins - Factoring > Finon cial agreement, the lousiness Sells Hs trade recenckieS +o tne fpactor(ka And PeCLNeS +h2 Casi, payment For paiting 2 Expacer sels +n@ claim of the tradt receivables 4o +ne forpailer and Re+S immediate Cash Payment. Ihracadcunin +icar; alacat falebini orpeiler YQ sans ve ainda nacit Sdeme alma ducumu Factcring > deals In +h@ rPeaivabic thot pals doe WHA 90 days Forfever 5 deals in 4+he QcCaunt recdivabieS Medism Ond long +erm, Factoring, > sale of ordi Qeods .on capital gqceods Qe made™~ ia FOrFAIE, B® Sermaye mallert Geerindetes alacadianin Sots , el KaymadQ yopilur Recteriag > ProviceS % 5O~ YG Pinan For faiting yy %100 Financing Cyawe of export) Factoring > CO be recour& or NenrecourS For foiting > AWwWway4S NON—reCOUc KR7 Factoring 2 Cost is iacurred by Seller o7 client Forpaiting 2 sete ts incurred by +”H2 OverSCa) yor : : eae lash uments Forraiting dealing With § billS Gp exchogr cad promissory Mele but factoring doesnt deal with. Factoring > Thee rent secondary maces For Foi tiag +» Tho’ is secandsy Merlot aready cash and or Sie ‘Trade receivables on ordinary goods. 0.90% Recourse or Non-recourse Cost of factoring borne by the seller (client). Basis Comparison for Factoring and Forfaiting foo eta eat dn ou he ator Involves account receivables of medium to (ong term maturities. ‘Trade receivables on capital goods. 100% Non-recourse Cost of forfaiting borne by the overseas buyer. Involves deating in negotiable instrument. Yes