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
1
Shipment
You ship a product or provide a service with a payment deferral
2
Documents
You submit your documents to a factoring company
3
Financing
The factoring company funds up to 100% of goods on delivery based of the shipping documents
4
Payment
Your customer pays the full amount to the factoring company at the end of the contractual payment deferral period
5
Fees
The factoring company transfers the remaining amount to you withholding a service fee
Factoring service fees depend on:
  • Amount of transferred accounts receivable
    1
  • Quality and quantity of transferred counterparties
    2
  • Payment deferral period
    3