FAQ

Factoring is a financial service allowing businesses to convert their deferred credits into cash. Factoring companies provide cash liquidity by taking over your credit and managing the collection process.

Factoring process flows as follows;

1. Application: Companies wishing to take advantage of factoring services (financing, credit assurance and collection) regarding their deferred credits apply to Q Finans Faktoring A.Ş. with relevant information and documentation. The determined amount of pre-payment is made after required review process.
2. Offer: Factoring solutions corresponding to needs of the company is determined and Q Finans Faktoring provides their offer to the client.
3. Transaction: Upon client's acceptance of the offer, a factoring contract is signed. Q Finans Faktoring A.Ş. begins to provide factoring services for the client according to the contract provisions.
4. Collection Process: Q Finans Faktoring A.Ş. provides the client with financing services regarding credits in scope of factoring process. In addition, collection of credits on maturity is also processed.
5. Credit Assurance: Depending on the type of factoring services provided, where the risk on unpaid credits is undertaken by the factoring company, Q Finans Faktoring A.Ş. will make a payment up to the limit determined under the contract in scope of credit assurance. Collection will be made from the client's customer on maturity of deferred credit and the remaining balance is transferred to the client.

Irrevocable Factoring (IF): Transactions where the factoring company undertakes the risk of non-payment by the buyer.

Revocable Factoring (RF): Transactions where the seller undertakes the risk of non-payment by the buyer.

Disclosed Factoring: Transactions where the seller notifies the buyer that factoring process is utilised regarding deferred credits arising due to the commercial activity between the seller and the buyer, and that the buyer is required to make invoice payment on maturity to the factoring company in place of the seller.

Non-disclosed Factoring: Transactions where the seller does not notify the buyer that factoring process is utilised regarding deferred credits arising due to the commercial activity between the seller and the buyer.

Factoring services are suitable for any scale of business engaged in sale of goods or services who has deferred credits. Small-, medium- and large-scale business can all enjoy factoring services in order to manage their cash flows.

• Increases cash flow and facilitates financial planning.
• Decreases collection risks and assures credits.
• Provides professional collection management and lessens operational load.
• Provides an alternative financing solution against bank credits

Factoring is not a credit transaction, but a method of converting existing credits of your business into cash. Bank credits require long application processes and securities, while factoring provides a faster and more flexible financing option.

In accord with regulations, invoices corresponding to the cheque sum must be presented for all transactions

In accord with regulations, invoices must be presented for all factoring transactions.

Factoring companies report to the Banking Regulatory and Supervisory Board (BDDK).

Cost of factoring services vary according to the sum of credit, the term of maturity and the risk conditions. Charges are generally comprised of factoring commission and financing costs. For a detailed offer please contact us.

Yes, factoring services are a legal financing method regulated by the Banking Regulatory and Supervisory Board (BDDK). Our company conducts all procedures in legal framework and in a transparent manner.

Please contact our customer representatives to get detailed information on how to enjoy our factoring services.