Are you looking for a solution that will allow you to maintain liquidity without fear - regardless of which counterparty you enter into cooperation with? Choose factoring - an effective financial tool that will make your business safer. Know its most important benefits and make a decision.

Factoring is a solution whose essence is to take over by the factor (factoring company) the receivables resulting from invoices issued by the factor (entrepreneur). - As a result, the company receives the money almost immediately, without waiting for the contractors to settle the amounts.

Access to funds without waiting for payment from the counterparty

How many times did it happen that a contractor was late with timely payment of an invoice obligation? Taking into account the fact that several counterparties may act in this way, the risk of losing financial liquidity is high.

When you decide to factor, you will receive your invoice receivables almost immediately. This gives you a solid financial cushion that prevents you from losing liquidity.

2. increase in the company's ability to pay its current liabilities

How many times did it happen that the unreliable contractor was late with payment, so your company also had a problem with meeting the payment deadlines?

If you want to avoid such a situation in the future, choose factoring. Thanks to the fact that you receive the money resulting from the due invoices immediately, you can settle your obligations immediately. You will have the money to pay your employees' salaries, buy new equipment, etc. You will have the money to pay your employees' salaries, buy new equipment, etc. And that's all without having to take out loans.

(3) Greater chance of rebates from suppliers

When it comes to the benefits of factoring, you can negotiate better terms of delivery of goods, e.g. from manufacturers. Because you commit to pay in the short term, there is a good chance that suppliers will be able to offer you favourable price discounts.

4. greater market competitiveness

As you want to be able to pay for your orders quickly or sell goods, you issue invoices with standard terms such as 7 days, 10 days or 14 days.

By choosing factoring, you can issue invoices with deferred payment terms, e.g. up to 60 days. In this way, you increase your attractiveness among your competitors, so that you have a greater chance to cooperate with even more contractors.

5. the absence of any need for recovery action

How many times have you spent a lot of time on late recovery? How many calls did you make? How many urgent letters have you sent? You'll admit it took a long time.

The benefits of factoring also include the fact that there is no need to carry out activities aimed at recovering debts from unreliable contractors. All debt collection activities are the responsibility of the factor. In addition, if you decide to use non-recourse factoring, the risk associated with the counterparty's insolvency is completely eliminated.