Factoringettevõtteid

Factoringettevõtteid, often translated as factoring companies, are financial institutions that purchase accounts receivable from businesses at a discount. This practice, known as factoring, provides businesses with immediate liquidity by converting their outstanding invoices into cash. Companies that sell their invoices to factoring companies do so to improve their cash flow, meet short-term financial obligations, or fund growth without taking on traditional debt.

The process typically involves a business selling its invoices to a factoring company, which then advances a percentage of the invoice's total value, usually 70-90%. The factoring company then collects the full payment from the customer. Once the payment is received, the factoring company deducts its fees and the advanced amount, and remits the remaining balance to the original business. Fees are generally based on factors such as the volume of invoices, the creditworthiness of the customers, and the length of time the invoices are outstanding.

Factoring can be beneficial for businesses experiencing rapid growth, those in industries with long payment cycles, or companies that have difficulty obtaining traditional bank loans. It can help manage seasonal fluctuations in revenue and ensure operational continuity. However, businesses should carefully consider the costs associated with factoring, as the fees can sometimes be higher than interest rates on loans. The choice of factoring company also matters, as different companies offer varying services and fee structures.