faktoriettevõtte

Faktoriettevõtte, also known as a factoring company or factor, is a business that provides a financial service by purchasing accounts receivable from other businesses at a discount. This process is called factoring. The factoring company then collects the debt from the original customer. This arrangement allows the selling company to receive immediate cash for its invoices, improving its working capital and cash flow.

The factoring company assumes the responsibility for collecting the outstanding debt. In return for taking on this risk and providing immediate funds, the factor charges a fee, which is a percentage of the invoice value. The specific percentage can vary depending on factors such as the creditworthiness of the customers being billed, the volume of invoices, and the industry. Factoring is often used by small and medium-sized businesses that may have difficulty securing traditional bank loans or require faster access to funds to manage day-to-day operations, meet payroll, or invest in growth.

There are different types of factoring. In "recourse factoring," the original business remains liable for the debt if the customer fails to pay. In "non-recourse factoring," the factoring company assumes the risk of non-payment by the customer. Factoring can also be "disclosed" (where the customer is informed that their invoice has been sold to a factor) or "undisclosed" (where the customer continues to pay the original business, which then forwards the payment to the factor).