Business

Smart Options with the Perfect Net Working Capital Funding

Hello! Today, let’s talk about what factoring is. Suppliers of goods (and sometimes services) often face a choice – work on a prepayment or provide a deferred payment? In the first situation, you can lose part of the clients, in the second case – funds to finance current activities. Factoring will help to preserve the golden mean. We’ll talk about it in this article!

Factoring is the financing under the assignment of a monetary claim.In simple words, factoring can be explained as a form of commodity credit , where the rights to the debt of the debtor are transferred to a third party (in this case, the factor). Thus, the supplier of goods or services receives payment from the factor faster than stipulated in the supply contract with the buyer. When one is aware of what is net working capital then only he can go for these schemes now

The term came to us from the English language, where “factoring” in this situation is translated as “mediation”.

Act as a factor can be a specialized factoring company, and a factoring department of the bank (which is the most common in Here).

The essence of factoring is reflected in its functions:

  • Financing of the supplier, urgent increase of his working capital;
  • Management function, in other words – collection of debt;
  • Also, if necessary, insurance of non-payment risks.
  • Download Factoring Agreement in the Enforcement of Obligations
  • Download Factoring Contract with Financing Existing Requirements
  • Download Factoring Agreement for Future Claims Financing

Factoring scheme

Factoring always involves the participation of three parties:

  • Factor (factoring company or bank department);
  • The supplier of the goods (the client, the creditor);
  • The buyer (the debtor);

The most common factoring scheme can be depicted in several steps:

  • The supplier ships the goods, having agreed with the buyer on deferred payment (from a week to four months);
  • The supplier enters into a contract with a factoring company, hands over the invoices to it;
  • The factor finances the given invoices, the supplier receives his payment. Usually, the factor pays immediately about 90% of the total cost, the remaining 10% is paid after the receipt and inspection of the goods by the buyer. Of course, the factoring company takes the commission specified by the agreement for services.

Become A Project Management Royal

Project managers carry a heavy weight of responsibility in their daily work. It’s a daunting, stressful task, but if you are prepared it can be a lot easier and greatly rewarding. That is why the royalty of old received strict education to prepare them for kingdom management. For project managers, you now have the opportunity to become prepared with accredited Prince2® courses!

Gain the confidence to take charge

One of the greatest stressors you face in project management, especially in the early stages, is the uncertainty about what to do. What is the full scope of your responsibilities, and how should you best perform your duties? The Prince2® Foundation and Practitioner courses help you with this by giving you the tools, methods and advice to follow best practice in your project governance duties.

With Prince2® certification you gain the knowledge to explicitly recognise all project responsibilities. You will be fully equipped to plan and manage what the goals of each project are, as well as how each component needs to be handled, by whom, and by when. By taking control of these aspects at various levels of all projects, you are also provided with the tools to improve communication in your teams and between yourself and these teams, giving you far greater control.

Be relevant, anywhere

When you think of kings and queens, you most likely think of medieval England, and interestingly enough Prince2® is used extensively by the British Government. And just like how the royals of old spread their influence, Prince2® certification has also spread to be recognised internationally. So you will not only be a relevant leader in your own country, but you can represent yourself and your company effectively in international projects – which makes you a great asset.

Add some Agile® to your royal capabilities

While Prince2® certification is clearly a huge advantage, it is true that oftentimes you will end up managing projects that require a lot more flexibility. Especially with projects involving a range of cutting edge technologies or uncertain policies, these projects can end up constantly evolving and throwing old plans out. The Agile®approach involves the constant evaluation of projects and allows more creative responses to problems. The only concern is that such creative responses can easily take a project slightly off-track, but that’s when you bring your Prince2® certification onto the scene as well to help pull everything, and everybody, back in line.

Discover your full potential and become an internationally desirable leader in business with Stratsure’s Prince2® Foundation and Practitioner courses today! Their experienced, driven trainers will make sure that you become the best that you can be, so give them a call.

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