Factoring is a tool for receiving working capital funds, solely based on invoices and documents for executed delivery of goods/services, with no additional collateral.

Recourse Factoring Advantages

• The client could recieve working capital funds for its current business needs, based on born receivables, evidenced with an invoices and documents for executed delivery of goods/services, with no additional collateral.
• Option for a trade on deferred payment terms basis
• Collection and administration of the accounts receivables
• Opportunity to use available funds up to a certain limit without establishing additional collateral
• Price comparable with the conventional working capital debt finance
• Facilitating the improvement of buyers’ payment behaviour
• Funding opportunity abiding by the particular commercial transacting (Seller/Buyer).

Non-recourse Factoring Advantages

• Coverage of the risk, associated with non-payment by trade counterparties A
• Accounting effect, optimizing the Supplier’s financial ratios via write-off of assigned to the Factor accounts receivable upon recieved advanced payments.