factoringsopimukset
Factoringsopimus, or factoring agreement, is a contract in which a business (the seller or assignor) sells its accounts receivable to a financing company (the factor) in exchange for immediate cash. The factor purchases the invoices at a discount and may also provide credit assessment, invoicing services, and collections. The assignment is typically notified to customers, who then pay the factor rather than the seller.
Parties and scope: The seller retains ownership of the underlying goods or services, while the factor assumes
Types: Factoring can be with recourse or without recourse to the seller. In recourse factoring, the seller
Process and economics: The factor advances a portion of the receivable (the advance rate), often 70–90%, and
Impact: Factoringsopimukset aim to improve liquidity, stabilize cash flow, and outsource credit control, but they can