+387 65 868 007
Schedule a meeting

About factoring

Everything you need to know about factoring

Factoring is a financial service that lets you collect your receivables from buyers before they fall due.

Factoring is a financial service that lets you collect your receivables from buyers before they fall due. In other words, it lets you shorten the wait for payment of your receivables and get the money you need to develop your business, while the factoring company collects the funds from the debtor when the invoice falls due.

Schedule a meetingFAQ

Three parties

How is the relationship between the assignor, the debtor and the factor defined?

Youassignor

1You assign the undue invoice

2Money in advance, less a commission

X faktorfactor

3Pays the invoice when it falls due

Your buyerdebtor
invoice / receivablemoneyRegular factoring: the invoice goes one way, the money the other — they cross at X faktor.

  • Assignor

    Your company: it assigns to the factor its short-term receivables from a contract with the debtor, and obtains funds.

  • Debtor

    Your buyer: it owes money for the goods or services it bought, and pays the factor when the payment falls due.

  • Factor

    X faktor: it buys, that is, takes over, the short-term receivable and collects it from the debtor when it falls due.

Benefits

The benefits of factoring for companies include:

A company with undue receivables from its buyers sells those invoices to a factoring company. The factoring company pays the company the money in advance, less a certain commission.

  • Faster cash inflow: the company gets the money right away instead of waiting for its buyers to pay.
  • Stability: factoring helps to stabilise the company’s cash flow by providing regular cash inflows, even when buyers are slow to pay.
  • Reliance on external resources: it is an alternative to traditional credit and bank loans, which can be especially useful for companies with an insufficient credit history or fast business growth.

What does factoring mean for your business?

  • Fast collection of receivables
  • More efficient business
  • Lower risk

What are the advantages of factoring over other ways of financing?

By using the services of a factoring company you get funds without long procedures and extensive paperwork, within 48 hours.

With this way of financing you do not put additional debt on your company; instead, you turn your receivables into working capital, the driver of your further growth and development.

With or without recourse

Who carries the responsibility for collection?

Factoring can be with recourse or without recourse.

  • With recourse

    The responsibility for collection remains with you to the end.

  • Without recourse

    The factoring company takes on the responsibility for collection and takes all measures to collect the receivable.

To find out which factoring option is best for your business, we recommend that you contact our team of financial experts.

Liquidity – when you need it most

Who is factoring for?

  • Small and medium-sized enterprises

    A lack of liquidity is often the decisive factor behind the instability of small and medium-sized enterprises.

  • Fast-growing companies

    Fast-growing companies often need additional sources of financing to support their growth and development.

  • Businesses with seasonal fluctuations

    Companies facing seasonal fluctuations in their business (hospitality, tourism, construction).

  • Businesses that want to secure financial stability

    Factoring can be a useful tool for every company that wants to stabilise its finances and focus on growing and developing the business.

Self-check

How do you know whether factoring is a good product for you?

It lets you focus on developing your business without worrying about administration and collection risks.

How do you know whether factoring is a good product for you?

Tick what applies to your company. We will add it to your meeting request, so you do not have to explain it twice.

Add to my meeting request

This is not an assessment: whether factoring suits you is decided only after a conversation with X faktor.

X faktor assistant

Factoring guide

Describe your cash-flow situation in your own words. The guide shows which of our three services fits, what X faktor looks at, and prepares your meeting request.

  1. 1You describe the situation — no names or amounts needed.
  2. 2The guide picks from our three services and explains them with our own texts.
  3. 3You check the prepared meeting request and send it.

Your text is sent to an external AI service provider (data processed in the USA) only to produce the answer; nothing is stored.

Examples

An automatically generated, informative answer. It is not an offer or advice; terms are agreed only with X faktor.

The guide needs JavaScript. Contact us directly: Meeting request form · +387 65 868 007 · info@xfaktor.org

Contact

Schedule a meeting

Secure fast collection of your receivables today.

Secure liquidity. Accelerate growth.

Schedule a meeting+387 65 868 007