Guide: Factoring for businesses

Factoring made easier

Factoring is a comprehensive financial service and is also called invoice buying. There are companies that specialize in factoring and help you improve your cash flow.

What is factoring?

Factoring is a financial service in which a company sells its invoices to an external party, usually a factoring company. By selling the invoices, the company immediately receives a portion of the payment instead of having to wait for customers to pay. Finance companies then take over responsibility for collecting the payments from customers.

What are the benefits of factoring?

How does factoring work?

We understand the importance of being able to strengthen companies' liquidity and provide quick access to working capital. We believe in offering flexible business loans instead.

Factoring with regression

Recourse factoring is a specific type of factoring in which we have the right to regress, that is, demand the company on payment if the customer does not pay the invoice on time. This means that the company can get back the invoices sold to the factoring company if the customer does not pay. Factoring with recourse is common practice in some industries where there may be a higher risk of unpaid invoices.

Factoring without recourse

Factoring without recourse means that one does not have the right to demand the company for payment if the customer does not pay the invoice on time. This type of factoring is more common in industries where the risk of unpaid invoices is lower.

Benefits of invoice borrowing or factoring

• Quick Liquidity: Through invoice borrowing companies can access cash immediately instead of having to wait for customers to pay their invoices. This gives the company the ability to manage its short-term financial needs and continue to grow.

• Reduced credit risk: When companies sell or loan their invoices to a factoring company, the responsibility for collecting the payments passes from the customers to the factoring company, which reduces risks. This reduces the risk of unpaid invoices and gives the company a better credit control over its customers.

• Increased liquidity: Through invoice borrowing, the company gets immediate access to part of the payment on the invoices. This increases the company liquidity and gives them the opportunity to invest in growth or manage their ongoing costs.

• Improved cash flow: For businesses with customers who have long payment times, invoice borrowing can be a good way to free up cash.