Facturaventa

Facturaventa is a term commonly used in Spanish-speaking countries to refer to the sale of an invoice. It essentially describes the process where a business sells its outstanding invoices, which represent money owed by customers, to a third party, often a financial institution or a specialized factoring company. This transaction allows the original business to receive immediate cash flow instead of waiting for the customer to pay the invoice according to its payment terms.

The primary benefit of facturaventa for a business is improved liquidity. By selling their invoices, companies can access working capital quickly, which can be used to cover operational expenses, invest in growth opportunities, or manage seasonal fluctuations in demand. This is particularly useful for small and medium-sized enterprises that may have limited access to traditional bank loans.

The process typically involves the business submitting its invoices to the factoring company. The factoring company then verifies the invoices and advances a percentage of their total value, usually between 70% and 90%, to the business. Once the customer pays the invoice to the factoring company, the factoring company deducts its fees and remits the remaining balance to the original business. The fees charged by the factoring company are usually a percentage of the invoice value, varying based on factors like the creditworthiness of the customer, the invoice amount, and the payment terms.