Factoring Costs

The enterprise is to encounter two types of costs against the financial services being offered to the commercial enterprises by virtue of the factoring contract.
1. Factoring Commission
The commission being received over the receivables, which are assigned by the seller against the factoring services (including the credibility enquiry, undertaking the risk, keeping and collection of the receivable accounts) being offered.
2. Factoring Fee
The fee being receivable in case when finance is provided for utilization.
Factoring fee and commission are subject to BSMV (Banking and Insurance Transaction Tax).

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