What is „factoring”?

The factoring represents a complex package of services, which is based on the process of acquiring receivables resulting from the delivery of goods or the provision of services. 😉

Practically, it is a flexible and adaptable tool that offers you at least 3 of the following services:

➤⠀claims administration;

➤⠀amiable collection of claims;

➤⠀taking over the risk of non-payment by your partner;

➤⠀early payment of invoices issued to your partners (flexible financing).

The parties involved in a factoring contract are:

➤⠀the factor (bank);

➤⠀the party (seller);

➤⠀and the debtor (the buyer).

Example

Your company has a recurring relationship with a client and issues invoices to them with a payment term of 60 days. Based on the factoring contract concluded with us, after the delivery and receipt of the goods, you can collect a percentage of up to 100% of the value of an invoice. At maturity, your partner pays the invoice into the factoring collector account and the financing is settled and we transfer the difference (if any) to your current account.

Also, we manage and amicably collect your invoices. Additionally, we cover your risk of non-payment (non-recourse factoring). What does this mean?

If your client enters insolvency or prolonged non-payment and the invoices are not affected by the commercial dispute, after an agreed contractual period, you recover the insured percentage.

With professionalism and care for your business relationships, through factoring we help you grow your business healthily.

If you want to find out which are  advantages brought factoring and the myths that have been created around this concept, we are waiting for you on BT blog. 😊