Factoring is a package of trade support services to domestic and foreign customers. Factoring service consists of a few more services, which makes factoring a product completely different from conventional financing through a loan.

Factoring is a form of financing, involving the buyout by a specialized company (factoring unit) from companies, suppliers or local government units (factored unit) of receivables from the sale of goods or services. With factoring company receives money earlier than the date of payment for the supply of goods or completed services. By factoring, factored unit protects itself against a possible delay in repayment of debts from the customer.

In practice, factoring practice provides the following capabilities:

• financing of receivables arising in domestic and foreign trade,
• registration of claims,
• collection of receivables,
• monitoring the timeliness of claims payments,
• settlement payments made by contractors on account of debts and making their statements,
• monitoring of contractors in the situation of delays in payment (in the grace period) by calling the contractor to send reminders to pay the outstanding debt in the period of grace,
• preparation of compilations of past due receivables and their transmission to the factored unit,
• taking the risk of insolvency of domestic and foreign contractors.

According to the risk of insolvency of the debtor factoring can be divided into three types:

• full factoring (without recourse) - the most favorable for the entrepreneur,
• part factoring incomplete (with recourse),
• mixed factoring.

As part of one product and a single contract, using only the issued invoice, the customer gets the opportunity to finance his trading, disciplining consumers and getting rid of the risk of non-payment.

Factoring is an ideal solution to the problems of liquidity and protection against the possibility of insolvency of the debtor.

If you are interested in factoring service, please contact us.