What is factoring?
Factoring is a form of short-term financing through purchase of quality undue receivables, arising from the sold goods or delivered services.
Bank pays to the Client amount of 100% of purchased receivables before maturity, less the amount of interest and fees charged. At maturity date the debtor (buyer) effects payment to the bank, thereby settling the purchased receivables.
Benefits of factoring
Simple and quick access to financing
Get financing quickly and easily through sale of undue receivables without taking on any debt or impacting your credit rating, and without standard security instruments.
Improved liquidity and cash flow management
Obtain collection of receivables immediately after delivery - by selling your receivables before maturity date, thus improving cash flow of your company. By making timely payments to your suppliers, check possibilities to make supplier discounts. Increase competitiveness of your company by selling receivables to the bank, if you want to provide your customers with extended payment terms without additional guarantees.
Protection against risk of non-payment
Protect your company against the risk of non-payment from customers with Non-recourse Factoring, in which the bank assumes the risk of collecting from the debtor (buyer).
More time and resources to focus on your business
Use funds received from selling your receivables before maturity date for new business opportunities and further business expansion. By transferring collection of receivables, you can focus on your sales activities and reduce the cost of your business.
Improvement of credit standing
Turn your receivables into cash using factoring and thus reduce the need for short term lending.
Expertise and experience in factoring business
Our employees have a longstanding experience and expertise in factoring business. Using individual and partnership approach we create the best solutions to suit your needs for receivables financing.