1. The client (seller) sells the goods to the customer (buyer) and invoices him in the usual way – inscribing a notification to the effect that the debt due on the invoice is assigned to and must be paid to the Factor.
2. The client offers the assigned invoices to the Factor under cover of a schedule of offer accompanied by copies of invoices and receipted delivery challans. 3. The Factor provides immediate prepayment up to 80% of the value of the assigned invoices and notifies the customer sending a statement of account.
4. Factor follows up with the customer and sends him the statement. 5. The Customer makes the payment to the Factor. 6.
When the customer makes the payment for the invoice, the Factor will pay the balance 20% of the invoice value.