Vendors unlock attractive short-term financing through their funding partners
What Is Factoring?
Designed for companies with high-volume sales to a portfolio of creditworthy buyers, factoring enables vendors to operate on an open account basis. It allows vendors to sell their accounts receivable to a third party, providing them with a quick and simple route to advance invoices, improve competitiveness and enhance liquidity.
Benefits Of Factoring
- Improve cash flow management
- Decrease days sales outstanding (DSO)
- Off-balance sheet treatment*
* Subject to agreement by vendor’s auditor
- The programme can either be disclosed or undisclosed. Normally, the relationship and conditions granted to the buyers are not altered