Common misunderstandings about factoring – we clarify the concepts

Factoring is a powerful tool for creating liquidity and cash flow stability, but it is still surrounded by several misunderstandings. Here we clarify what is true – and what is not.

”Factoring is expensive.”

No – the cost of selling invoices is often lower than alternatives like lines of credit, late payments or no-shows, and you only pay when you use the service.

”It looks bad to customers.”

On the contrary. Professional factoring creates clear routines and shows that you have your finances in order. It does not negatively affect the customer relationship – quite the opposite.

”It’s only for companies in crisis.”

Wrong. Many growth companies use invoice purchasing to free up capital and grow faster. Selling invoices is an active choice to create liquidity and stability.

”It’s complicated.”

Modern factoring solutions are digital, simple and transparent. You can sell invoices with a few clicks – and get paid the same day.

Factoring is a flexible tool for modern companies that want to have control over their liquidity and cash flow.