Recourse factoring
Possibility to fund up to 100% of the invoice amount for the goods shipped or services rendered for the payment deferral period under the supply or service contract
Advantages of recourse factoring
- Increase sales volume
- Requires no collateral
- Reduce cash gaps
- Speed up capital turnover
How non-recourse factoring works
Shipment
You ship a product or provide a service with a payment deferral
Documents
You submit your documents to a factoring company
Financing
The factoring company funds up to 100% of goods on delivery based of the shipping documents
Payment
Your customer pays the full amount to the factoring company at the end of the contractual payment deferral period
Fees
The factoring company transfers the remaining amount to you withholding a service fee
Factoring service fees depend on:
- Amount of transferred accounts receivable1
- Quality and quantity of transferred counterparties2
- Payment deferral period3