The division into groups is similar to the internal type. The significant difference here is the number of factoring companies (they can act as banks and microfinance organizations). The factoring scheme, when the financial agent and the supplier are residents of the same state, is export financing in order to pay for the goods of the creditor, as well as to take responsibility for currency and other risks.
The buyer may also have a factor. The transaction, settlements, risks and other monetary issues are then handled by financial agents of both parties. The debtor and creditor are only required to deliver and accept the goods.
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International financial relations often resort to a special type of scheme. Agency factoring is regulated by the UNIDROIT Convention on International Financial Leasing. Russia has recently (2015) also become one of its participants. The document defines the main provisions, the scope of use of the schemes, the rights and obligations of the parties, etc.
In addition to the main factoring groups described, several additional ones can be noted:
By the number of factors involved in the transaction:
one agent - direct;
two agents - mutual.
At the moment of romania email list occurrence of the debt obligation:
consensual - the factoring agreement is concluded before the assignment;
real - the factoring agreement is concluded after the debt has arisen.
By type of document flow:
classic (traditional);
online factoring (EDI) – use of electronic document management systems.
By the level of services provided:
limited (narrow) list - the factoring company offers financing and collection of the buyer's debt;
Conventional (broad) - basic functions, as well as assistance with accounting and insurance reports.
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Pros and cons of factoring
Advantages of factoring over lending:
Simple requirements for supplier approval.
The factoring company actually collects accounts receivable.
No collateral is required.
When conducting an international transaction, factoring is an excellent solution to protect the creditor from the risk of non-payment of the debt.
There is a flexible method of paying off debts for debtors.
Deferred payment without cash gaps for the supplier. Thus, the company has a targeted and accelerated turnover of funds. If a loan is issued, the company is required to have a cash balance in the accounts.
A factoring transaction is not a loan, which means there will be no changes in the balance sheet accounts.
The organization pays the income tax when the goods were shipped or the service was provided. In the absence of the factoring procedure, it may happen that the tax payment obligations arise before receiving money from the debtor.