faktoreerimisele
Faktoreerimisele is an Estonian term that translates to "factoring" in English. It refers to a financial transaction in which a company sells its accounts receivable to a third party, known as a factor, at a discount. The factor then assumes responsibility for collecting the outstanding invoices from the company's customers. This practice is a form of invoice financing, allowing businesses to obtain immediate cash flow by liquidating their unpaid invoices.
Companies typically use faktoreerimisele to manage their working capital, especially when they have long payment terms
There are generally two main types of faktoreerimisele: recourse and non-recourse. In a recourse arrangement, the