Factoring as an established financial solution to commercial credit insurance
In the last ten years, factoring has become a professional and recognised form of financing.
In factoring, you sell on as necessary your outstanding debits to your factoring company, which then pays you immediately about 90% of the debt. The rest is paid on maturity, less a transparent deduction of charges. As all receivable accounts are covered by commercial credit insurance this is also a very safe model. Whether in open factoring with the knowledge of your clients or in concealed factoring behind the scenes, the advantage is the same.