Factoring

A business that sells on credit has its cash tied up in receivables. Through factoring, the seller assigns its invoices to a factor (a bank or specialised company), which advances a large part of the invoice value immediately, collects payment from the buyers when due, and pays the balance minus its charges.

Types include:

• With recourse: the seller bears the loss if the buyer does not pay.
• Without recourse (non-recourse): the factor bears the credit risk of the buyer's insolvency.
• Disclosed (buyers are notified to pay the factor) and undisclosed (invoice discounting, where the seller continues collecting).
• Domestic and export (international) factoring, the latter often handled through a two-factor system with a factor in the buyer's country.

Benefits include improved cash flow and working capital, outsourced credit management and, under non-recourse factoring, protection from bad debts. The cost is the discount charge on the advance plus a service fee.

Factoring is commonly compared with forfaiting, which applies to larger, medium-term, without-recourse export receivables. In Nepal, factoring is less developed than in larger markets, and banks mainly provide receivable finance through bill discounting and working capital loans.

उधारोमा बेच्ने व्यवसायको नगद आसामीमा अड्किन्छ। फ्याक्टरिङमा विक्रेताले बीजक फ्याक्टर (बैंक वा विशेष कम्पनी) लाई हस्तान्तरण गर्छन्; फ्याक्टरले बीजक रकमको ठूलो अंश तुरुन्त दिन्छ, म्याद पुगेपछि क्रेताबाट सङ्कलन गर्छ र शुल्क कटाएर बाँकी दिन्छ।

प्रकार: recourse सहित (क्रेताले नतिरे विक्रेताले नोक्सानी बेहोर्ने), recourse बिना (फ्याक्टरले जोखिम लिने), खुलाइएको र नखुलाइएको (इनभ्वाइस डिस्काउन्टिङ), स्वदेशी र निर्यात फ्याक्टरिङ।

फाइदा: नगद प्रवाह र चालु पुँजी सुधार, कर्जा व्यवस्थापन बाह्य स्रोतबाट र recourse बिनामा खराब ऋणबाट सुरक्षा। नेपालमा फ्याक्टरिङ कम विकसित छ; बैंकहरूले मुख्यतः बिल डिस्काउन्टिङ र चालु पुँजी कर्जामार्फत प्राप्य वित्त दिन्छन्।