Training Objectives

By the end of the programme, participants will be able to:

• Define the concept of factoring and illustrate how it works with practical applications
• Define and differentiate the various types of factoring, including reverse factoring
• Describe the onboarding and funding process of reverse factoring
• Practice the additional controls for non-notification factoring
• Sell factoring more effectively through need-based selling, objection handling and probing questions
• Explain how international factoring helps exporters remain competitive
• Explain the roles of the various parties involved in international factoring
• Demonstrate the benefits of reverse factoring to the anchor buyer and the supplier
• Explain unfactorable debt and its risk mitigation
• Illustrate the types of limits in factoring and the importance of setting limits

Training Outline

Fundamentals of factoring

• Factoring definition and interpretation
• The usefulness of factoring for both SMEs and factors.
• The Story of Factoring – a short history of how factoring d began and why it is important
• Role and responsibilities of a factor

International factoring

• Two Factor System
• Single Factoring System
• Direct Factoring System
• Direct Import Factoring
• The Process of International Factoring

Reverse factoring & supply chain financing

• Understanding the Supply Chain
• Global Trade, and the increased role of Open Account solutions
• A briefing on Payables Finance and its Variations
• Reverse Factoring – The Role of the Buyer
• Establishing a Reverse Factoring Programme

Operation aspects of factoring

• Overview of the factoring operation
• Pre-activation
• Monitoring
• Daily transaction controls

Seller, buyer, import factor, credit insurance management.

• How to identify and manage the risks of the seller and buyer.
• buyer’s risk mitigation through the import factor and credit insurance.

Legal and accounting aspects of factoring

• How the factor’s interests can be protected against competing interests.
• The accounting aspects of how the seller’s and factor’s books are recorded.

Who Should Attend

The programme is ideal for:

• Banking professionals
• Internal Auditors

Training Style

By combining theoretical foundations with practical applications from actual companies, local and international, interactive activities, and collaborative group discussions, this training style aims to create an engaging and effective learning experience for participants in the field of factoring.

CPD Recognition

This programme may be approved for up to 8 CPD units in Accounting and Auditing. Eligibility criteria and CPD Units are verified directly by your association, regulator or other bodies which you hold membership.

In-house Training

For groups within the same organisation, this course may be customized to meet any specific needs and delivered in-house.