laskunrahoitus

Laskunrahoitus, also known as invoice financing or invoice factoring, is a financial service where a business sells its outstanding invoices to a third-party financier (a factor) at a discount. This provides the business with immediate cash flow instead of waiting for their customers to pay.

The process typically involves a business issuing an invoice to its customer for goods or services provided. Instead of waiting the standard payment terms, often 30, 60, or 90 days, the business can submit this invoice to a factoring company. The factoring company then advances a percentage of the invoice's value, usually between 70% and 90%, to the business within a short period. Once the customer pays the invoice in full to the factoring company, the factor remits the remaining balance to the business, minus their fees.

Laskunrahoitus is particularly beneficial for small and medium-sized businesses (SMEs) that experience cash flow gaps due to long payment cycles. It helps them meet operational expenses, payroll, and invest in growth opportunities without taking on traditional debt. The fees charged by the factor vary depending on factors like the volume of invoices, the creditworthiness of the customers, and the payment terms.

There are two main types: factoring and invoice discounting. In factoring, the factor also typically handles the sales ledger and collection of payments from the customer. In invoice discounting, the business retains control of its sales ledger and customer relationships, with the factor advancing funds against the invoices without direct customer interaction. Laskunrahoitus can be a flexible funding solution, but it's important for businesses to understand the costs and terms involved.