Classical factoring

What is factoring

Factoring is a financial service that offers the companies of several sizes and activities solutions when providing the working capital. By selling the claims you get immediate financing of your operations and managing with your claims. This makes it easier for you to plan financial flows, improve your liquidity and broaden the range of your business. Factoring is a service of a specialised financial institution that allows companies to trade the claims with cash funds.

How factoring works

• you choose your claims that you want to sell-off
• you controll the costs of factoring (take advantage of factoring only when you will need to - we will be there for you with advice)
• financing up to 100 %
• the amount of immediate financing depends on the assessment of entire risk in the branch, past experience with buyer and the quality of each claim
• reservation of funds is intended for bridging the possible delay of buyer
• the price is based on the assessment of branch, buyers and duration of financing

Advantages of factoring

• Faster closing of the claims,
• Faster cash flow,
• Improved liquidity to finances operation,
• Better creditworthiness,
• No burden on financial records on current liabilities,
• Increased possibilities to get bank loans,
• Bigger competitiveness by reaching prolongation of payment deadlines in the offer,
• Protection against the risk of non-payments.