Factoring
For Suppliers
It reduces the credit risk of the seller.
The working capital cycle runs smoothly.
Improves liquidity and cash flow of the organization.
Cost reduction, through maintenance of the sales ledger, collection & administrative fees.
It reduces the need for the introduction of new capital.
For Purchasers
Obtaining favorable terms through having a open account terms that will improve the cash flow.
Increasing purchasing power through increase the purchase volume without being committed to banking facilities conditions.
Increasing the creditability with suppliers.