Do your partners expect extended payment terms from you, which requires you to find additional working capital?
We will help you to find the right factoring offer (full, partial or reverse factoring) tailored to your business profile while protecting you against debtor default. Under Polish law a factoring contract is an unnamed agreement. This means that there are no uniform rules that deal with it. Therefore, under the provisions of Article 509 of the Civil Code on Freedom of Debt Transfer, factoring is a financial service consisting of the buying by a factoring company (the factor) from a business of its non-deferred receivables from sales of goods or services.
Advantages of factoring:
Improved financial liquidity, especially with extended payment terms for suppliers.
Continuous flow of working capital, allowing the timely meeting of financial obligations.
Improvement in the company balance sheet in terms of assets, by converting holdings to cash, resulting in improved profitability, liquidity and debt ratios.
Facilitating new business deals, including foreign ones, by the offering of longer payment terms for products and services sold.
The factor secures the financed receivables, not the assets of the business.
Payment improvement in relations with clients.
Possibility of gaining competitive advantage, as apart from the implementation of the financing function, factoring offers additional services such as debt management, debt collection and debtor financial analysis.
Additionally, in the case of full (non-recourse) factoring, the debtor insolvency risk is taken over through trade receivables insurance.
The advantage of recourse factoring is the lower cost of financing, but it does not protect the business against the possible bankruptcy of the recipient.
The advantage of reverse factoring is that you obtain working capital by regulating the vendor's liability to your suppliers. For faster payment of invoices made by the factor, the customer can get a discount from the supplier.