Factoring is the fastest growing form of trade finance in the World at the moment. Factoring is the purchase by the factor of debts evidence by invoices where the factor pays out an agreed advance taking an assignment of the debts. Factoring is flexible and provides fast access to cash for the seller with a growing sales ledger.The role of the Factoring in Trade Finance is increasing dramatically. It is therefore essential to have a good understanding of the foundations of factoring operations.In this unit you will learn:- The basic procedure in factoring operations;- The operation of a Factoring company;- The key contents of a Factoring agreement- Risk management for Factoring operations. Completing this course will confer 5 CPD Credits towards internationally recognised Continuous Professional Development Requirements within organisations operating this kind of staff development methodology. Course Outline 1. INTRODUCTION TO FACTORING1.1 The Factoring Division1.2 Factoring or Invoice Purchase Procedures1.3 Initial Procedures1.4 Mechanics of Processing a Client Order 2. THE FACTORING AGREEMENT2.1 The Factor's Discretion2.2 Fees2.3 Termination2.4 Personal Guarantee 3. The Contract3.1 The Contract - Warranties3.2 Purchase All Acceptable Accounts by Factor3.3 Prior Approval of Sales3.4 Notice of Assigned Invoices to appear on all Invoices3.5 Purchase Price and Margin3.6 Authorization to the Factor for Charges and Obligations3.7 Procedures for approved account invoices3.8 Reserve of Facial amounts of invoices over finance provided3.9 Receipt of Goods without Dispute3.10 Credit Terms3.11 Solvency and law provisionsFurther Reading1 – UNDROIT Convention on International Factoring2 – Factoring – A Tool for Trade Financing3 – Introduction to International Factoring and Project Finance4 – Freight Factoring5 – Factoring : A Better Alternative6 – Factoring and the Firm ValueForum Assignment Our Trade Finance courses were awarded Best Online Trade Finance Accredited Courses Globally by Capital Finance International Magazine in 2019! Our trade finance online training offerings are endorsed by the International Finance Corporation for professional development in this area by its issuing and partner banks. Our online certificate program is a great value for money way to prepare for the exams of the CDCS and CITF exams. All our courses are also accredited for Continuous Professional Development (CPD) purposes by the CPD Certification Service of the United Kingdom which confirms they meet international CPD standards
