How do factoring and invoice borrowing work with us?
When you borrow against your invoice, this means that we use your invoice as collateral for a loan. In this way, you can swiftly and simply free up capital and increase the company’s liquidity. Your invoice provides collateral for the loan. Invoices are usually used as collateral for a loan of up to 60-95%, with us, you can borrow up to 100 % of the value of the invoice.
We offer you both the possibility of invoice borrowing and invoice purchase, whatever is best for you.
We will take care of all the administrative work such as monitoring invoices, reminders and payment demands. This frees up valuable time for you. Furthermore, the process is swift and convenient – the money is paid directly.
Why should one borrow against invoices?
It can sometimes be difficult to charge payment in advance for goods and services. This can mean that you have to lay out money for, for example, wages for your employees and payments to your suppliers. It may also be the case that certain projects take longer than expected or that your costs are higher than expected. In this situation, it may be a good idea to borrow against the invoice to release capital.
What is the difference between invoice borrowing and factoring by the banks?
The major difference from the banks’ factoring services is that we lend you up to 100% against your invoices. With the bank’s factoring, you can most often only receive around 75%.
Invoice borrowing functions in a similar way to invoice purchase with the difference that if your customer doesn’t pay, you must repay the amount borrowed. This normally takes place by deduction from new invoices instead of payment. Our efficient reminder routines and not least our strong brand sees to it that your customers give priority to your invoices.
You can securely hand over responsibility for your invoices to us. We have long experience of processing our clients’ customers professionally.
