Factoring for SMEs: Immediate Liquidity instead of Long Waiting Times
Fast financing for the Mittelstand – With factoring you improve your liquidity within 24 hours and protect yourself against payment defaults.
What is Factoring and How Does it Work?
Factoring is a proven financing solution where companies sell their open receivables to a factoring company. Instead of waiting weeks or months for payments, you receive up to 90% of the invoice amount within 24 to 48 hours.
- You issue an invoice to your customer for goods or services
- You send the invoice to the factor (electronically or by post)
- The factor transfers the agreed advance to you within 24-48 hours
- Your customer pays the invoice directly to the factor
- After payment receipt, you receive the remaining amount minus the factoring fees
The Most Important Advantages of Factoring for Your Company
Immediate Liquidity for Your Daily Business
You no longer have to wait for late payments. The money is available to you within 24-48 hours.
Protection Against Payment Defaults
With true factoring, the factoring company takes over the complete default risk.
Better Credit Rating and Banking Conditions
Factoring significantly improves your balance sheet structure and leads to better ratings.
Relief of Your Accounting
Depending on the factoring variant, the factor takes over the entire receivables management.
No Elaborate Credit Check
Unlike classic bank loans, not your creditworthiness is in focus, but your customers' payment ability.
What Does Factoring Cost? Transparent Fee Structure
The costs for factoring are manageable and predictable. With favorable providers, factoring fees are between 0.07% and 1.5% of the receivable amount.
- Sales volume: Higher annual sales lead to lower factoring fees
- Industry affiliation: Trade often receives better conditions than crafts
- Payment terms: Shorter payment terms (30-60 days) are more cost-effective
- Factoring variant: In-house factoring is cheaper than full-service solutions
Factoring vs. Bank Loan: Which is the Better Choice?
Factoring proves to be particularly superior when you need quick liquidity for ongoing costs, bridge long payment terms of your customers, want to protect yourself against payment defaults, or want to improve your creditworthiness with banks.
What Our Customers Say
Factoring vs. Bank Loan: Which is the Better Choice?
"Factoring has revolutionized our cash flow. We now have the liquidity we need for growth within 24 hours."
"The protection against payment defaults gives us enormous security, especially in economically uncertain times."