Direct Debiting System(DDS) Discount, which provides the Seller companies the opportunity to collect their receivables before their maturity, is a product often preferred by companies that make a choice of turning into cash.
Within this system, Seller companies will be able to discount the amounts related to the invoices that have been enrolled in the current DDS system before maturity, limited to the credit lines allocated to the dealers/distributors/vendors. Since the loan closing will be done by the invoice amounts to be collected from the dealers, there is no recourse to the Seller company for closing the loan.
No notification is made to Credit Bureau for the limits to be allocated to Seller companies, and the discount transactions are not displayed on the risk center declarations. For this reason, there is no additional credit risk by financial institutions arising from the discount transactions.
As the Seller companies collect their receivables before maturity, it enables them to hold a more liquid position on the balance sheet.
Since the assignment of the receivables is counted as collateral while allocating the DDS limit and there is no recourse to the Seller companies regarding the closing of the loan, the allocation process can also be carried out quickly.
Factoring Agreement is signed by the Seller company and the Branch.
As the invoice discount is defined as a factoring transaction in accordance with the legal regulations, a Factoring Agreement must be signed.