What is factoring?
Factoring involves your selling of short-term receivables from the delivery of goods and services. Up to 90% of the receivable is immediately paid out to your company – and the balance once your customer has paid in full.
Who uses factoring?
- Small, medium-sized, and large companies with annual revenues over EUR 300,000
- Companies with dramatically rising and fluctuating sales
- Capital-intensive companies
How does factoring work?
We offer factoring to you through our subsidiary, Intermarket Bank:
- You invoice and then send your invoiced services to Intermarket
- Intermarket immediately pays you up to 90% of the gross invoice amount
- Once the invoice amount is collected, you receive the remaining 10%
Upon request, Intermarket handles your accounts-receivable bookkeeping and receivables collection – and ensures you against default risks.
Improved liquidity and use of discounts for early payment
- Reduction of your balance-sheet total and improvement of your equity ratio
- More favourable payment and delivery terms for your customers