Factoring Fomento makes Loans
Can Factoring make personal credit or grant loans and financing to its customers? The answer is No. We are going to make it very clear that factoring companies are not financial and not banks, but banks can carry out some operations commonly done by these development companies. For bureaucratic and fiscal reasons it is not possible to obtain loan in factoring . The companies denominated as business development provide continuous services and provide marketing and credit counseling, risk selection, credit management, accounts receivable tracking and many other activities related to credit and credit management for companies.
In the most simplified way of understanding factoring we are going to say that it is a company incorporated to carry out the purchase of documents receivable from other legal companies, that is, it pays for documents that can be exchanged or converted into future money.
An example of negotiation that can be done in factoring companies without any problems is the post dated check exchange (better known with pre check). Usually, the anticipation of values with the exchange of checks is done with your bank, but if you have pre-dated checks from customers of your store or trade to be deposited later, but faces the urgency of needing money immediately, factoring Is A Quick Credit Alternative?
The operation is very simple, once registered in a “factoring and business development company”, she buys the checks in her power, paid by them cash and cash. Although the transaction is an apparently safer alternative to the motherland, the service has a cost, and the cost does not compare to that of banks and finance. Factoring when buying the checks in your possession discounts a percentage of the total value and also a kind of fee called FACTOR on the period remaining for the withdrawal of the checks to be due.
Who uses Factorings?
Who can use factoring services? Legal Companies! The services are provided only to legal entities such as retail stores in general, commercial establishments, professionals and health professionals with open company and any active company that works with checks and other receivables accepted by the companies of fomor mercanto (Factorings).
What is Factoring?
As I said, you can not make loan in Factoring , but you can get cash credit from the sale of receivables, do not confuse. It is worth mentioning that operations where the contractor is not a legal entity, the company makes loans with guarantee of vehicles, checks, etc. It makes loans with credit cards, concludes loans with the sale of real estate and mobile assets, releases consumer financing (CDC), and does not formalize operations with commercial development contracts, certainly not factoring.
If you are an entrepreneur, you are looking for a loan for your company, read these 3 FINEP credit programs for companies, find out how to get PROGER credit for the company, and get loan for microentrepreneur to use as working capital. If that early credit, you already know you have other easier and cheaper ways to get financial resources. Another alternative is credit unions, but factoring is no longer an option when you need money or urgent credit.
Factoring offers reduction or even bureaucracy advantages, as well as being quick to release credit. Always look for legalized factoring companies so you do not fall into the hand of loan sharking companies. Doubts consult ANFAC – National Association of Development Societies.