Factoring financial services

FACTORING IS A FANTASTIC TOPIC IN FINANCIAL SERVICES

1. F ACTORING BY N ISHANTH H M BA RYMEC BALLARI

2. I NTRODUCTION O F F ACTORING: with the h el p of the factor, manufactures and sellers of goods and services can improve their cash flow through r epayment facilities up to a certain percentage (say 80 to 90 percent)of the value of the assigned invoices as and when necessary. such as financial facility will definitely facilitate such organizations to increase their business activities as well as to improve their financial performance.

3. M EANING O F F ACTORING: The word factoring has its origin from Latin 'factor' which means 'doer', the website's new collegiate dictionary defines a factor as ' 'one that lends money to producers and de al ers on the security of accounts receivables '' . Factoring is a financial transaction whereby a business sells its accounts receivable to a third party at a discount in exchange for immediate money with which to finance continued business.

4. D EFINATION O F F ACTORING According to ‘’ C.S. kalyansundara m " , "Factoring is the origin outright purchase of credit approved account receivables with the factor assuming bad debt losses"

5. T YPES O F F ACTORING 1.Recourse factoring 2.Non-Recourse factoring 3.Advance fa ctoring 4.Bank participation factoring 5.Maturing factoring 6.Invoice factoring 7.Notified and und i sclosed factoring 8.Full factoring

6. Contd.. 9.Buyer-based , seller-based and selective factoring 10.Export factoring.

7. F ACTORING M ECHANISM: Factoring business is genarated by credit sales in the nominal course of business.the main function of factor is realization, of sales. once the transaction takes place, the role of factor steps, is to realize the sales collect receivable. thus,factor acts as an intemediary between the seller and sometimes along with the seller's bank together.

8. FACTORING MECHANISM

9. A DVANTAGES O F F ACTORING 1)For client 2)For customers(Buyers) 3)For bankes

10. THANK Y OU!!!