Factoring – smart financing for faster liquidity
Do you have customers who only pay after 30 or 60 days – but you yourself need money now? Then factoring could be the solution.
What is factoring?
Factoring means that you sell or mortgage your customer invoices to get paid immediately. This gives you faster cash flow and reduces the risk of liquidity problems.
Two common types:
- Invoice financing – you maintain customer contact but receive part of the invoice amount directly.
- Invoice sales – the factoring company takes over the invoice in full, including any risk.
Advantages:
- You don't have to wait for payments.
- Reduced administration.
- Safer liquidity – especially during growth or seasonal variations.
Factoring is not for everyone – but for many businesses it is a quick, convenient way to get cash when it is really needed.