Factoring (factoring)

Factoring (factoring) is also referred to as collection insurance, and the exporter assigns to FCI (the financial institution providing factoring services) its current or future accounts receivable arising out of its contract for the sale/service of goods with the buyer, which is financed by FCI, the importer's credit rating, the sales account management, Credit risk guarantee, debt collection and other services of a comprehensive financial services. It is a method of requesting third Party (FCI) to assume risk liability in international trade in order to avoid the risk of foreign exchange, when the payment is settled by collection and credit.

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