How does the factoring process work?
1. A business entity that wants to sell/transfer its receivables arising from sold goods or services rendered (for which an invoice has been issued to the debtor) approaches a factoring company.
2. The transferring business entity submits a request to the factoring company in one of three ways:
- Directly via a phone call or an email sent to the factoring company’s address.
- Through the contact form on website profactor.rs by submitting a simple electronic request.
- Via the platform accessible on the website profactor.rs.
3. The factoring company (Factor) assesses the creditworthiness of both the assignor and the buyer (debtor). After completing the evaluation, it provides feedback to the assignor regarding the feasibility of the factoring transaction.
4. The Factor drafts the contract and other necessary documentation, which is then sent to the assignor.
5. The assignor notifies their buyer/debtor about the assignment of receivables and provides proof of this notification to the Factor.
6. The assignor submits the original documentation related to the factoring transaction to the Factor.
7. After verifying the documentation, the Factor disburses the agreed-upon amount.
8. The Factor then waits for the invoice due date to collect payment from the debtor on behalf of the assignor.