Advantages of factoring

  • Better opportunities to finance your business: Factoring enables you fast and easy access to sources of external financing, without reducing your credit rating and limiting your Bank overdrafts.

  • Improved liquidity and cash flow management: Financing through factoring improves working capital (factoring of receivables before the due date enables earlier cash inflow), facilitates the entities growth and sales and consequently cash flow planning easier.

  • Improved liquidity and cash flow management: Financing through factoring improves working capital (factoring of receivables before the due date enables earlier cash inflow), facilitates the entities growth and sales and consequently cash flow planning easier. Among other things this enables you timely payment of your suppliers, and the use of certain benefits, such as discounts and rebates from your suppliers.

  • Improved financial position of your Company: The Factor (a company who takes over the Clients receivables from customers, created through the sale of products or services with deferred payment) transforms your trade receivables to cash. In non-recourse factoring the gearing ratio is thus reduced, improving the credit rating and creditworthiness of your company - your company will receive funding in an easier and simpler way.

  • Access to funds regardless of credit rating: Depending on the type of factoring, the decision on the approval of funding by the Factor depends on the quality of your trade receivables, while the risk remains with the debtor, as opposed to the traditional banking business, where the decisions on approval of funding depends on the creditworthiness of the Client.