As we mentioned in the previous article, factoring brings together several services in one product and is more than just financing.

It’s a flexible tool that, depending on the product type, can combine at least two of the following: advancing a percentage of the value of invoices issued to your partners before their due date; administering and amicable collection of those receivables; and, optionally, covering your partners’ non-payment risk.

Why choose factoring?

• You get an advance on invoices you issue to your partners, before their due date. In practice, you turn payment on terms into immediate liquidity.
• It’s a self-liquidating. facility. If the goods are delivered and received/the service performed and accepted, there’s no need to worry — the advances are repaid through the collection of invoices from your partners.
• No tangible collateral — the facility is based on assigning the trade receivables owed by your partner, so it doesn’t require collateral such as property/land; you can use those for investment loans or other projects for your company.
• If your sales are higher, your receivables are higher too. That means you receive more financing.
• You can offer your partners commercial advantages — specifically longer payment terms.
• You pay your suppliers faster, and in doing so you can receive discounts from them.
• You assess your customer portfolio with the bank’s help and build your sales strategy accordingly.
• If you also opt to insure the non-payment risk, you can eliminate losses from unrecovered receivables or delinquent customers.
• You get better collections, so cash comes in faster. In other words, your financing costs are lower.
• Your receivables are administered through the bank. More precisely, you save on staffing and administrative costs.

Why choose factoring with BT?

• We have over 10 years’ experience, and each year we manage more than 500 transactions in factoring with volumes of over EUR 500 million
• We offer the full range of domestic/export factoring, with/without recourse, so you can choose according to your business needs
• We’re #digitalbanking, so you benefit from factoring services directly from home
• We have factoring specialists, who help us offer the best solutions