What is Factoring?

Factoring is working capital financing and collection services in return for the assignment of receivables backed by invoices or other documentation that can substitute invoices originated from sales of goods and services.

This definition of factoring means that factoring is a process for receivables management and cash management. A brief answer to the question of "What is Factoring?" can be: The factoring system is one of the most significant ways of financing that provides liquidity and utilization for your deferred receivables. Your receivables are converted into safe and efficient collection and cash management tools through the agreements with factoring companies.

Factoring simply provides you funding to fulfil your liabilities and finance growth. If your business cash cycle is long, it is more difficult to finance growth. Factoring provides your cash cycle shorten in a way to decrease your financing needs for healthy growth. Thus, factoring services are an efficient alternative for all companies that finance receivables, independent from size or the position at the corporate life cycle.

You can utilize a huge portion of the receivables assigned to us immediately. This funding decreases you cash cycle and further growth is automatically financed by receivables without additional need for external funding.

We follow up collections of the assigned receivables to us and you can manage your cash flow without additional sources and focus for collections and can commit these sources to your core business of production, investment and marketing.