FACTORING

Factoring grants an opportunity for a business to obtain immediate capital or cash, based on an expected cash inflow. ‚Äč

Companies may face cash flow shortage when they have an excess of transactions done with credit terms.

These receivables might not be paid on time for the company to meet its own payables.

Thus, the company can secure assistance from a Financial provider aka a factor.

A factor is an entity who can pay for the receivables of the company ahead of its credit term maturity.

The factor, in this case, acts as the purchaser, whereas the original buyer must pay the receivables to the factor instead of the seller - at the time of maturity of the allowed credit term.

P R O C E D U R E S

1.Buyer and Seller signs SPA

2.Buyer and Seller submits onboarding documents to STFG

3.STFG conducts initial due diligence and submits the documents to the Factor

4.STFG notifies the seller upon successful on-boarding (may take up to 25 days)

5.Seller settles the invoice for processing fees and proceeds to signs factoring agreement to commence with factoring cycle.

EXCEPTIONS AND RESTRICTIONS

  • COMMODITIES SUCH AS GEMS AND JEWELRY, REAL ESTATE, PERISHABLE FOOD PRODUCTS, CRUDE OIL AND SERVICES.
  • SANCTIONED COUNTRIES / OFAC COUNTRIES

REQUISITES AND CONDITIONS

(FROM BOTH BUYER AND SELLER)

  • Business Registration License
  • Shares Registry
  • Owner's passport copy
  • Latest 3 years balance sheets
  • 5 Transaction history documents (paid invoices and delivery notes)

Minimum transaction value: USD 300,000.00 Maximum transaction value: USD 10,000,000.00 Credit Period: 30 days to 120 days (calendar days)

Ready to get started? Enquire us now