Factoring provides several important benefits, which make it an increasingly popular form of receivables financing. With factoring you will have your working capital under control and avoid delayed payments from customers. Don’t wait for your money, get it immediately. Assigning your receivables prior to maturity to UniCredit Factoring will significantly improve your financial planning and make developing your business easier.
Factoring is not only a mean of flexible financing of receivables. It also includes management and collection of receivables, as well as insurance against customers’ unwillingness or inability to pay.
Benefits of factoring
Speed of the approval process
Cooperation starts without unnecessary delays within few days after delivery of required documents.
Professional management of receivables
Professional management of receivables represents active enforcement of every individual claim by a trained team. This procedure includes sending of reminders, direct negotiations with debtors regarding payments and use of representation abroad (export factoring).
Mitigation of customers’ unwillingness to pay
Professional management of receivables results in customers’ improved payment morale causing reduction of the period needed for claims collection.
Extended receivables maturity for customers
With factoring you can offer your customers longer maturity period which will enable you to gain significant competitive advantage. You can use factoring financing to settle your obligations without having to limit the growth of your company.
Protection against customers’ inability to pay
Using non-recourse factoring ensures you return on receivables from customers in insolvency (bankruptcy, liquidation).
Flexible financing limits dependent on actual turnover
Clients’ entitlement to draw funding increases in direct proportion with increasing turnover, i.e. volume of assigned receivables.