Why is it important?
The divisional structure of a factoring operation is key element that directly affects its success.
Products offered by a factoring operation may differ from company to company and have a direct impact on the organisational structure.
The number and size of the divisions and the organisational chart are very much dependent on the type of organisation.
If your company is a fully integrated factoring division of a bank, then the organisational chart may only consist of the International and Client Relations departments. Other services such as sales, marketing, credit control, accounting etc. are provided by the branches and/or the relevant departments of the bank.
At the initial stage of a factoring operation, many different functions can be assumed by the same persons or departments. Later on, as the volume of transactions and the type of factoring services offered increases, it is necessary to segregate the duties and create different departments to ensure the healthy growth of the organization.
You can find extensive information on this topic in Part Two of the Guide to the Establishment of a Factoring Operation.