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  • Yes Bank Project

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    Kamlesh Kumar Sahu
    17 views2 pages
    This document outlines a factoring agreement between a supplier and a financer. The financer provides 80-90% advance payment to the supplier on invoices, with the remaining 10-20% paid after deducting fees. The financer assumes the risk of non-payment by collecting payment directly from the buyers. This allows the supplier to convert accounts receivable into immediate cash flow.

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    YES BANK PROJECT.pptx

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    This document outlines a factoring agreement between a supplier and a financer. The financer provides 80-90% advance payment to the supplier on invoices, with the remaining 10-20% paid after deducting fees. The financer assumes the risk of non-payment by collecting payment directly from the buyers. This allows the supplier to convert accounts receivable into immediate cash flow.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    17 views2 pages

    Yes Bank Project

    Uploaded by

    Kamlesh Kumar Sahu
    This document outlines a factoring agreement between a supplier and a financer. The financer provides 80-90% advance payment to the supplier on invoices, with the remaining 10-20% paid after deducting fees. The financer assumes the risk of non-payment by collecting payment directly from the buyers. This allows the supplier to convert accounts receivable into immediate cash flow.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    CONTRACT OF SALE [invoice from supplier with payment details]

    Financing to supplier [80-90%


    advance on invoice nominal]

    DE
    AL
    ER
    P P LIER
    SU
    FINANCE
    R Repayment at maturity
    [100%] to an account of
    Payment of remaining 10-20% the financer
    fees

    FACTORING AGREEMENT
    This normally involves multiple buyers and debtors
    PLATFOR
    Payment flows
    M
    open position information sent to financer and request for Contractual relationship
    financing

    FACTORING AGREEMENT
    Select supplier Negotiate sales Purchase order Purchase order Send purchase
    Source supplier
    and goods terms request approval order

    Inventory Pre-shipment Order to cash


    Post-shipment finance Fulfil-to-service finance finance
    Prepare to Confirm Manage
    Ship goods Produce Confirm Receive
    transport load estimated time
    & invoice inventory goods order order
    shipment of approval

    Post-shipment finance
    Prepare to Dispute Reconcile Generate and
    Offload, inspect
    offload Receive invoice resolution invoice send payment
    & store goods
    shipment

    Purchase to pay Dispute management

    Reconcile & Process Receive


    account Collect payment
    payment advice payment advice

    Order to cash Payment & settlement

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