Question 1

What is factoring and how does it work?

Accepted Answer

Factoring is a financial service in which a business sells its invoices (receivables) to a factoring company and receives most of the amount in return within 24 hours. This way, you don't have to wait for your customer's payment deadline.

Question 2

What types of invoices can be factored?

Accepted Answer

Generally, invoices issued to domestic or foreign customers with a maturity of 15–120 days, which are not legally disputed, can be factored.

Question 3

Which companies can use factoring service?

Accepted Answer

Primarily small and medium-sized enterprises, but essentially any company that invoices reliable customers on deferred payment terms.

Question 4

How long will it take for me to receive the money?

Accepted Answer

We typically transfer up to 80–90% of the invoice amount within 24–48 hours after signing the contract.

Question 5

How much does factoring cost?

Accepted Answer

The fee depends on several factors, such as the buyer's payment deadlines, invoice amount, and the buyer's credit rating. We provide a unique offer for each partner.

Question 6

Do I need to provide collateral for factoring?

Accepted Answer

In most cases, no additional collateral is required, as the buyer's solvency is the main factor. This is also one of the key advantages of factoring.

Question 7

Will my customer know that I am factoring the invoice?

Accepted Answer

This depends on the structure we are working with. Both assigned (open) and non-assigned (silent) factoring are possible.

Question 8

What happens if my customer doesn't pay?

Accepted Answer

Depending on whether you chosse recourse or non-recourse factoring, the risk will be partially or fully assumed by us, or it may remain with you.

Question 9

Do I need to make accounting changes?

Accepted Answer

Factoring does not require complicated accounting transformation, but it is advisable to consult with your accountant for proper invoice management.

Question 10

How can I request a quote?

Accepted Answer

Simply contact us through the Contact button on the top of the page and our colleagues will respond within 1 business day.

Question 11

What kind of companies can benefit from B2B factoring?

Accepted Answer

Businesses that invoice other companies on a deferred payment terms – typically operating in industrial, commercial, logistics, IT or service sectors.

Question 12

At what amount is it worth using factoring?

Accepted Answer

It may be worthwhile even for monthly account turnover of a few million forints - we work on an individual basis.

Question 13

Can only domestic customers be factored?

Accepted Answer

No – export factoring is also possible if the foreign buyer has sufficient solvency.

Question 14

Does factoring affect my relationship with my customers?

Accepted Answer

Not necessarily. In the case of silent (non-assigned) factoring, your customer may not even be informed about the service.

Question 15

What is claims management?

Accepted Answer

A process that helps a company or individual collect their legitimate financial claim – for example, in the case of overdue or unpaid invoices. The process can take place out of court, but can also be directed to legal action if necessary.

Question 16

What is the difference between claims management and collections?

Accepted Answer

Credit management is a negotiation-based approach, focusing on reaching an agreement. In contrast, collection involves formal legal measures.

Question 17

How long does a claims handling process take?

Accepted Answer

The duration depends on the complexity of the case. Simple, uncontested cases are often resolved within 15-60 days, while complex or litigation-related cases may take several months.

Question 18

What happens if the claim is not recovered?

Accepted Answer

If the negotiation fails, legal action may be initiated, such as issuing a payment order, filing a lawsuit, or starting enforcement proceedings.

Question 19

Does claims management harm customer relationships?

Accepted Answer

Not at all. A well-organized, professional and legally procedure that takes into consideration the importance of partnerships can definitely help ensure sustainable future cooperation.

Question 20

What does it mean to sell a receivable?

Accepted Answer

When a claim is sold (also known as assignment), the creditor sells the claims to another company, such as a factoring company. From that point on, the factoring company becomes entitled to collect and manage the claims.

Useful information!