Factoring is a complex package of services based on the process of acquiring receivables from the delivery of goods or services. 😉

Basically, it's a flexible and adaptable tool that gives you at least 3 of the following services:

➤⠀administration of claims;

➤⠀ amicable debt collection;

➤⠀taking the risk of your partner's default;

➤⠀pay invoices issued to your partners before the due date (flexible financing).

The parties involved in a factoring contract are:

➤⠀factor (bank);

➤⠀the seller;

➤⠀and the debtor (buyer). 

Example

Your company has a recurring relationship with a customer and you issue invoices with a 60-day payment term. Based on the factoring agreement concluded with us, after delivery and receipt of the goods, you can collect up to 100% of the invoice value. Upon maturity, your partner pays the invoice into the factoring collector account, the financing is extinguished, and we transfer the difference (if any) to your current account.

We also manage and collect your invoices amicably. In addition, we cover your risk of non-payment (factoring without recourse). What does that mean?

If your customer becomes insolvent or defaults on payment and the invoices are not affected by the commercial dispute, after a contractually agreed period, you will recover the insured percentage.

With professionalism and care for your business relationships, we help you grow your business healthily through factoring.

If you want to find out what the advantages of factoring and myths surrounding this concept, visit our BT blog. 😊