Factoring
Learning objectives
By the end of this letter of credit course you 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
Course curriculum
Lessons
Factoring means different things to different people and many people are confused about this product. In this lesson, you will learn that factoring is very simple and is useful to both the (Micro, Small, and Medium Enterprises) MSME and factor.
More and more importers are requesting for open account terms. Selling on open account terms brings with it the risk of non-payment by importers. Exporters now have a tool called export factoring which helps them to overcome the risks of open account terms. The use of export factoring will help them to compete internationally and grow their business.
Factoring is a tedious process as there are many buyers to evaluate. Reverse factoring or supply chain financing, which is based on the anchor buyer, is a less tedious process than factoring. It helps suppliers to have seamless access to financing at lower cost.
In this lesson, you will gain an overview of the factoring operation, covering pre-activation, monitoring and daily transaction controls. The objective of these controls aims to reduce the risk of factoring
In factoring, apart from the risk of seller, there is also the risk of the buyer. This lesson shows how to identify and manage the risks of the seller and buyer. The buyer’s risk can also be mitigated through the import factor and credit insurance.
It is important to understand the legal and accounting aspects of factoring. The legal aspects determine how the factor’s interests can be protected against competing interests. On the other hand, the accounting aspects determine how the seller’s and factor’s books are recorded.
Factoring is a difficult product to sell. However, through selling skills such as need based selling, objection handling and probing questions, factoring salespeople can increase their success rate in selling factoring. In this lesson you will also learn about tools you can use to mitigate the risks of factoring.
This section will test your knowledge on what you have learned so far. Please note this is not an exam.
FAQs
Answers to your most commonly asked questions.
This course forms part of the curriculum for the Global Trade Certificate (GTC) but can also be purchased on its own.
If you just complete this course then you will earn a Letter of Completion once you finish (please note there is no exam for this individual course).
However, this course can also be put towards achieving the GTC qualification. More details can be found here.
If you complete the GTC then you will earn a Certificate of Achievement, signed by the ICC Secretary General, once you pass the final exam.
All candidates need to be able to read and write in English. For this course we recommend that you have previous experience of trade or supply chain finance or have completed either the Introduction to Supply Chain Finance course or the Introduction to Receivables Finance course.
Your purchase includes 12 months to access all the lessons. You can access the lessons as many times as you like within the 12-month access period.
If you have already purchased the CTFP and chosen your electives then the Factoring course will not be available as an elective on your dashboard. If you wish to switch electives, please email our Helpdesk team.
If you have purchased the CTFP but not yet chosen your electives, then the Factoring course will be available and displayed as an elective on your dashboard.
Due to the immediate availability of our course content upon registration, ICC Academy has a strict no-refund policy for our courses and certifications. For more details, please refer to our Terms and Conditions.
This online course will take approximately 5-6 hours to complete depending on your level of experience.
Candidates will have 12 months access to the lessons which can be repeated.
- One-year access to all 8 lessons in the online course. The course will take approximately 5 hours to complete but you can revisit the lessons as many times as you like within the 12 month access period.
- Nine case studies and 20 assessment questions – we’ll show you how to apply what you learn to real-world scenarios. Please note this is not an exam.
- A printable glossary containing all the key terms for you to refer to throughout the course
- Dedicated, full-time IT support
- Downloadable Letter of Completion
Yes, all our courses are taken online. This means they are accessible at any time, from anywhere in the world. Learn when and where you want.
This course has been designed for general practitioners working in banks, financial institutions, or fintechs with an interest in trade finance, factoring & reverse factoring, and/or working in functions such as receivable management, credit management/approval, risk management, relationship management, operations etc.
