My1Factoring

What is Factoring?

Factoring is a tailor-made package of services designed to secure your debt collection and improve your cash flow, thereby offering you a competitive edge in your markets, both domestic and abroad.
Companies trading on open account terms can assign their receivables to World Opportunites Fund and benefit from:

Who can use it?

All companies with a stable portfolio offering credit terms up to 180 days to corporate buyers can make use of factoring services. The receivables must result from completely fulfilled contracts by the seller.

Factoring benefits

  • Professional collection services in USA, Canada and in more than 80 countries
  • Protection against bad debts (up to 100%)
  • Financing (up to 90% of invoice value available immediately)
  • Buyer’s credit assessment (on regular basis)

When does factoring apply better?

  • Sales on open account terms
  • Continuous business relationship
  • Clear sales title / enforceable receivables
  • Clean / clear performance of the seller
  • No counter-trade
  • Portfolio spread over a number of buyers

The Pricing

The pricing for factoring has three major components:

  • Fee to set up the factoring package
  • Charge applied to the invoice value for the services rendered other than financing
  • Discounting or interest levied for the financing (applicable to the funds-in-use on a daily balance). This will depend on the interest rates for different currencies

The price may also be conceived as an ‘all-in’ charge

Factoring around the World

There are more than 3,500 factoring companies registered in more than 80 countries worldwide. There are several international and national factoring associations promoting this service and its variations in the different national markets and internationally, in order to assure a global standard vision for this industry.

World Opportunites Fund sees factoring as a highly-specialized financing tool that is complementary to its more traditional trade service products, and vital to the growth and development of  small and medium sized businesses. Factoring provides exporters a risk mitigation alternative to letters of credit and with it the opportunity to grow their business. World Opportunites Fund sees factoring as an important tool for the growth of international trade, especially in developing countries exporting to the more developed countries.