Factoring is a form of commercial finance whereby a business sells its accounts receivable (in the form of invoices) at a discount. Effectively, the business is no longer dependent on the conversion of accounts receivable to cash from the actual payment from their customers, which takes place on typical 30 to 90 day terms. Businesses benefit from the acceleration of cash flow by obtaining cash from the factor equal to the face value of the sold accounts receivable, less a factor's fee.
A factor is obliged to pay a factorer the amount of money, which is a part (80%) of the liability. Our client gets the money in 3 days since signing an agreement. The rest of the money (20%) less a factor’s fee is paid to a factorer as soon as a customer pays a factor the whole amount coming from an invoice. Both factor and factorer inform a customer that they have signed a factoring agreement.
Why factoring?
A factorer receives cash before payment terms. He can offer longer payment terms to his clients, contrary to the businesses that don’t use factoring.
Changing receivables into cash.
Possibility to meet one’s obligations on time. A client can avoid the situation when he has already signed contracts but is unable to pay his liabilities.
Factor’s presence disciplines a customer to pay on time. Because of our experience in that matter we can assure you that CASH FLOW’s presence helps to improve business relations. Contractors appreciate the fact that we guarantee client’s solvency (during the agreed period of time).
We thoroughly (and for free) check every business and invoice. Our client gets information whether his clients are solvent.
Main features of factoring:
Fast procedures – (signing an agreement up to 3 days). Therefore you can save your precious time.
Less procedures – we don’t require a lot of guarantees, finance documents and certificates (unlike banks).
Accessibility – we don’t need you to meet strict requirements. Our offer is available for every business – no matter what kind of business it is and how long it exists. If a bank refused to grant you a credit – our offer is a very attractive option.
Simple and understandable procedures – we have been using model agreements and other applications for years, so you can count on us.
We have better chances to collect receivables than a seller of the product or service. We have cash, lawyers and other experts that have a will to work for you. Moreover, it’s our business to keep good and long lasting relations between a factorer and a consumer.
