postheadericon Smart Factoring that Is Perfect As per Your Requirement

Factoring is unsecured financing in the amount of up to 100% of the amount of supply that you receive from the bank in exchange for the right to demand money for goods or services delivered on deferred payment terms.

The key difference between factoring and traditional lending is that the Bank does not require collateral. You receive financing in exchange for the assignment of the right to demand money for the goods delivered by you on a deferred payment.

Factoring for the seller

This financial service will allow you to optimize financial flows and reduce receivables from buyers.The opportunity to work with your company on a deferred payment schedule will attract new customers, help to establish a reliable partnership with the old and increase sales.

In addition, factoring will open for you cooperation with the largest trading networks, operating only on a deferred payment terms. The support of the factor company is essential in this case.

Factoring for the buyer

If you work with several suppliers, the factoring service will allow you to count on more favorable terms of cooperation. A deferred payment due to factoring will be provided by UniCredit Bank, and your suppliers will immediately receive money for delivery and will not incur the costs associated with cash gaps. This is beneficial to all parties to the transaction.

Debts on the supply of products impede the development of business. Between the shipment of goods and their payment often takes quite a long time. As a result of unfair fulfillment of obligations by partners, business cannot develop at a sufficiently high pace. To establish a clear financing for the production process, managers find a factoring company with extensive experience in the market.

  • Work with receivables has its own specifics. To create a financial mechanism for its liquidation, appropriate skills are required. Using the services of specially created firms, the supplier receives payments as a result of the assignment of their rights regarding the deferral of payments.
  • Cooperation is carried out according to a certain scheme. The provider or service provider concludes the contract with the intermediary, having previously discussed the terms of cooperation. After the agreement enters into force, the factoring company implements a cession of the monetary claim, and the buyer is calculated already with another company with which legal relations arise. Without having to manage debt, the debtor gets more opportunities to engage directly in production activities.

The benefit of factoring lies not only in saving time and energy for increasing output. Business acquires a new impulse, which affects the competitive ability of the firm. It increases its stability. Due to the clear functioning of the financial mechanism of factoring, the turnover of funds is accelerating, accordingly, the enterprise can expect to increase profits. For this reason, the factoring commission quickly pays off.Clients of specialized companies evaluate the obvious advantages of beneficial cooperation. Due to uninterrupted financing, the producer of goods expands the assortment, accelerating the access to the sales markets. In addition, cash flows are more efficiently controlled.

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