Factoring facilitates electronic communication with a factoring company, enabling online:
- Assignment of invoices
- Communication regarding the status of receivables
- Receipt of invoices for services (commission, interest, fees)
Immediate access to funds
- Improve your company’s liquidity
- Flexible financing instrument based on the value of deliveries
- Receive payment immediately after you deliver goods or provide services
- Equivalent to short-term loan
- Payments from the customer received within 60 days from maturity will be reported to the client; however, no interest as sanctions or penalties is charged
- No need for the client to recover debts from its customers
Higher competitiveness
- With factoring, you can offer longer maturity to your customers, up to 90 days as a standard and 120 days in exceptional cases
- Optional open trading account for your trade partners
- No need to apply for a letter of credit, and you still receive protection against your customers’ insolvency
- Clients only need a commercial contract with customers, comprising basic information about the transaction/delivery and standard documents relating to such delivery
Factoring costs
- One-off factoring fee and interest on pre-financing are charged for factoring services
- Cost of factoring can be partially included in the prices of deliveries
- Client in fact provides its customers with supplier credit