Factoringyritys

Factoringyritys is a Finnish term that translates to "factoring company." A factoring company provides a financial service called factoring, which is a type of debtor finance and invoice financing. In a factoring arrangement, a business sells its accounts receivable (invoices) to a third party, the factoring company, at a discount. This allows the business to receive immediate cash flow instead of waiting for its customers to pay.

The factoring company then takes on the responsibility of collecting the outstanding debts from the business's customers. There are different types of factoring, including recourse factoring, where the seller retains the risk of non-payment by the customer, and non-recourse factoring, where the factoring company assumes this risk. Factoringyritykset can be particularly useful for small and medium-sized enterprises (SMEs) that need to manage their working capital effectively and smooth out cash flow fluctuations.

By using a factoringyritys, businesses can access funds that are tied up in unpaid invoices, enabling them to pay suppliers, meet payroll, and invest in growth without waiting for customer payments. The discount offered by the factoring company covers their administrative costs, the risk they assume, and their profit margin. The specific terms and fees can vary significantly between different factoringyritykset.