IFS was and still the first Lebanese Factoring Company approved by the Central Bank. IFS is developing Factoring and activities relating to the management of short term receivables, hoping to launch them very soon in the Lebanese market and the region.

About Factoring:

Definition:

Factoring is a complete Financial Package that combines working capital financing, credit risk protection, accounts receivable book keeping and collection services.

How it works?

It is an agreement between the factor and a seller. Under the agreement, the Factor purchases the seller’s accounts receivable, normally without recourse, and assumes the responsibility for the debtor’s financial ability to pay. If the debtor goes bankrupt or is unable to pay its debts for credit reasons, the factor will pay the seller. When the seller and the buyer are located in different countries, the service is called “International Factoring”.

Benefits of Factoring:

International Factoring provides the following benefits to exporters:

• Increased sales in foreign markets by offering competitive terms of sale

• Protection against credit losses or foreign customers

• Accelerated cash flow through faster collections

• Lower costs than the aggregate charges for L/C transactions

• Liquidity to boost working capital

• Enhanced borrowing potential and an opportunity to make use of supplier discounts.

Also International Factoring provides the following benefits to importers:
• Purchase on convenient “Open Account” terms

• No need to open L/C ‘s

• Expanded purchasing power without blocking existing lines of credit

• Orders can be placed swiftly without incurring delays, L/C opening charges, negotiation charges….

IFS and Factoring:

• IFS will work with the assistance of an International Factoring Company, which will keep the company up-to-date with the latest technologies in the Factoring business to serve better its clients.

• IFS will contract with an Insurance Company against payment defaults

• IFS will engage in customers investigation programs in coordination with information diligence offices.

• The information acquired by bank reports, trade references, status reports and litigable information will give IFS a good judgment on the best customer base that it can engage with.

• IFS specialized and dedicated team is always ready to serve efficiently its clients and is supported by a customized computer system

Factoring Fields:

IFS will address its Factoring services for the traders and manufactures of goods and the providers of services in the following fields:

• Pharmaceutical products trading

• Hospital equipment trading

• Advertising companies

• Printing industry

• Electro – household

• Food & consumer goods

• Other industries