In working through the IF-Group, a Factor has the possibility of using the Two-Factor System, Direct Export Factoring and/or a number of hybrid arrangements, possibly combined with a special credit insurance scheme. This gives the Export Factor the flexibility to tailor an optimal service package for each of its exporting clients - all through the IF-Group's unique overall framework of rules and procedures.

Types of cooperation between Export and Import Factors

Based upon the specific requirements of its client, the Export Factor may decide to enter into different cooperation arrangements with the Import Factor. These cooperation arrangements fall within a broad spectrum. On the one side we find the traditional Two-Factor Service, whereby the Export Factor is heavily dependent upon the services of the Import Factor. On the other side we find the Direct Export service, whereby the Export Factor requires no or very little service from the Import Factor. In between, we find Non-Notified Factoring and Fast Cash Factoring arrangements. In addition, through our Partners and Sponsors the Export Factors have access to local professional support services allowing them to further enhance and tailor their product offering :

Two-Factor Service
Applicable in situations where the Export Factor wishes the Import Factor to be in full control of the combination of credit cover, dunning and collection services in the importer's country. For more detailed information on the Two-Factor method click here.

Full Factoring, where the Factor is responsible for sales ledger accounting, credit cover up to 100% and the collection of receivables.

Collection only, where the Factor simply collects the receivables and maintains the sales ledger administration (no credit protection is provided).

Non-Notified Factoring (NNF), or Confidential Invoice Discounting, where the Factor's main role is to provide credit protection in a confidential environment (there is no notification of the assignment of the debt). Sales ledger administration remains under the clients' control and payments are made directly to the Export Factor or exporter. The Import Factor assumes responsibility for collection at a pre determined time after due date on a case by case basis.

Export Bulk Factoring, where the Factor provides similar services as in an NNF arrangement, but without the confidentiality (the debtor is immediately notified of assignment of the debt).

Fast Cash Factoring (FCF)
Applicable in situations where the Export Factor wishes the Import Factor to provide credit cover and dunning services, while the debtor is advised to pay directly to the Export Factor in order to speed up the collection process.

Direct Export Factoring
Applicable in situations where the Export Factor will control the credit cover, the dunning and the collection process without the involvement of an Import Factor. If required, the Import Factor may be used for invoice / balance verification purposes.

Hot & Cold Backup
“Hac” is a standby service agreed between the Export factor with the Invoice discounting client and the Import Factor who agrees from the outset of the new client to provide a collection service on demand, should it be required. There are 2 stages, the “Cold Stage” during which the Export and Import factor establish the conditions under which an accepted agreement will operate and the “Hot Stage” when the Export factor gives notice to the Import Factor, as the assignee to commence the collection process.