First of all, the seller's enterprise applies to the bank or company that operates the agency financing, and makes a detailed report on the operating conditions of the enterprise and the credit customers, and then the company that handles the business conducts in-depth and detailed investigation and research. It is necessary to investigate not only the credit status of the applicant enterprises, but also the credit status of credit customers. Finally, it is necessary to set a credit line for each credit customer on behalf of the enterprise. The agency financing company is only responsible for the bad debts within the quota, and the enterprise is responsible for the excess. After the review, both parties signed the contract. The contents of the contract are divided into two situations: transfer of rights and interests and grant of rights and interests. The former means that after the agent financing company accepts the transfer of accounts receivable, if the customer's debt turns into bad debt, the agent financing company still has the right of recourse against the debt collection enterprise, and the losses are still borne by the debt collection enterprise. The latter method is that the enterprise sells the accounts receivable to the agency financing company, and if bad debts occur, the agency financing company will bear the losses. After the contract is signed, when the enterprise sells goods or provides services, it will send a copy of the invoice to the agent financing company while sending the payment notice to the customer. The company will input relevant data, such as invoice amount, number, payment date, etc. Input it into the computer and prompt payment when it is due. After the enterprise sends a copy of the accounts receivable invoice to the agency financing company, the agency financing company provides financing to the enterprise.
There are also two financing methods: one is that the agent financing company pays a certain proportion of cash (generally 90%) to the enterprise according to the invoice amount, and the rest is withheld and returned to the enterprise after the accounts are collected; The other way is regular financing, that is, the agent financing company pays the amount of regular invoices to the enterprise and calculates interest. The interest rate of advance payment is usually 2%-3% higher than the bank's preferential interest rate. In addition, according to whether the agent financing company comes forward to collect accounts, it can also be divided into public agent financing and behind-the-scenes agent financing. The former is the agent financing company to collect accounts; The latter is still collected by the enterprise itself and then transferred to the agency financing company.