factoringettevõte

A factoringettevõte, often referred to as a factoring company or factoring firm, is a business that provides factoring services. Factoring is a financial transaction where a business sells its accounts receivable, or invoices, to a third party, known as the factor, at a discount. The factor then assumes the responsibility for collecting the payment from the business's customers. This arrangement allows the business to receive immediate cash flow instead of waiting for customers to pay their invoices, which can improve liquidity and working capital.

Factoring companies typically purchase invoices from businesses that need to accelerate their cash conversion cycle. The discount rate varies depending on factors such as the creditworthiness of the business's customers, the volume of invoices, and the industry. In addition to providing immediate funds, some factoring companies also offer credit protection against customer defaults, or bad debt insurance, and manage the accounts receivable ledger for their clients. This can free up administrative resources for the selling business.

The primary benefit of using a factoringettevõte is enhanced cash flow. Businesses, especially small and medium-sized enterprises (SMEs), often face challenges with late-paying customers. Factoring provides a way to overcome these cash flow gaps, enabling businesses to meet their operational expenses, invest in growth, or take advantage of early payment discounts from their own suppliers. The services offered by factoring companies can be particularly useful for businesses experiencing rapid growth or those in industries with extended payment terms.