Factoring
What is factoring?
Factoring is a complex tool for better management of accounts receivable. Once treated as an alternative to credit, today's factoring is increasingly a solution for companies seeking a way to ensure financing, take over the responsibility for the debtor's ability to pay, manage the book-keeping of accounts receivable and debt collection.
According to the Ottawa Convention of 1988, a factoring company has to provide at least two of the following four functions:
- financing
- taking a risk cover of insolvency by debtors
- running clearing accounts
- collection of receivables.
Benefits:
Factoring with Polfactor SA will bring you the following benefits:
- improvement of cash flow
- flexible financing of current operations depending on sales volumes
- possibility of obtaining discounts from sub-delivers
- in exports factoring - minimizing the exchange rate risk
- taking a risk cover of insolvency by Buyers, up to 100% in exports
- possibility of finding new liable export clients
- possibility of obtaining import credit covers
- use of Polfactor SA experience, tools and know-how in running clearing accounts of Buyers, and managing reminders and debt collection
- improving business relations with Buyers