faktooringuettevõte

Faktooringuettevõte, often shortened to faktooring, is a financial transaction where a business sells its accounts receivable to a third party, known as a factor. This allows the business to receive immediate cash for its invoices, rather than waiting for customers to pay. The factor then takes on the responsibility of collecting the payments from the customers.

The process typically involves a company that needs working capital entering into an agreement with a factoring company. The company provides the factor with copies of its invoices. The factor then advances a percentage of the invoice value, usually between 70% and 90%, to the company. Once the customer pays the invoice in full to the factor, the factor deducts its fees and commissions and remits the remaining balance to the original company.

Faktooring is particularly useful for small and medium-sized businesses that may have difficulty securing traditional bank loans. It can help improve cash flow, manage seasonal fluctuations in revenue, and fund growth without taking on debt. However, it is important to consider the fees involved, as they can be higher than traditional financing methods. The terms of a faktooring agreement can vary, with some factors offering full recourse, meaning the original company is still liable if the customer doesn't pay, and others offering non-recourse, where the factor assumes the risk of non-payment.