There are two types of costs that a firm incurs when receiving guarantee, receivable and collection management and financing services under a factoring agreement.
This commission is charged on the seller’s assigned receivables to cover the costs of the factoring services such as credit investigation, risk assumption, maintaining accounts receivable and collections.
This interest is charged when financing is provided.
Under the regime of incentives granted to exports under current tax laws in Turkey, commissions and interests paid on export factoring transactions are exempt from all government taxes, duties, and charges. In the case of domestic factoring, the factoring commissions and interests are liable for banking and insurance transaction tax.