Polytrade Factoring Transaction

How does a Factoring Transaction work on PolyTrade?

Suppose John has a furniture manufacturing business. He supplies this furniture to IKEA.

So, let’s say in a month, John sells furniture worth $4,000. The credit period for this transaction is 3 Months. This means that at any point in time, approximately $12,000 ($4,000 X 3 Months) worth of John’s funds are stuck in IKEA sales.

This can lead to a cash crunch for John. So, he has an option to factor his invoice on Polytrade. This is what it would look like:

As soon as IKEA receives goods, John would sell his invoice on Polytrade. Polytrade would immediately release funds to John’s account.

Polytrade would collect this invoice once it is due for payment after three months.

Note: Maximum time limit for processing a transaction on Polytrade is for new users and 24-48 hours for existing users. Banks or traditional financial institutions normally take 1 to 2 months to process a similar transaction.

The steps followed by Polytrade for invoice approval are as follows:

• Invoice submitted by the seller

• Offer made by Polytrade

• Seller’s company documentation submitted

• Seller’s KYC

• Seller’s Due Diligence

• Buyer’s Due Diligence

• Final offer made to the seller

• Advance fund paid to the seller

• Collection of invoice

• Trade is closed