Factoring
What is Factoring?
Factoring is particularly useful for companies that need to improve their cash flow, reduce the risk of bad debts and optimise their financial operations.
Advantages of Factoring
Immediate Acces to Cash: Receive funds within 24-48 hours of submitting invoices to the factor.
Improved Cash Flow Eliminates waiting for customer payments and ensures a steady cash flow.
Credit Risk Reduction: The factor assumes the risk of bad debts, protecting your company.
Invoice Management: Outsource the management of invoice collection, saving time and resources.
Facilitates Business Growth: Provides the necessary resources to take advantage of business opportunities without waiting for customers to pay.
Everything you need to know
- Issue Invoices: You continue to provide goods or services to your customers and issue invoices as usual.
- Send Invoices to Factor: Send your outstanding invoices to the factoring company.
- Receipt of Advance: The factor will advance you a percentage of the value of the invoices (usually between 70% and 90%) within 24-48 hours.
- Invoice Collection: The factor will handle the collection of invoices directly with its customers.
- Balance Payment: Once the client pays the invoice, the factor transfers the remaining balance, minus a small service fee, to the client.
