By submitting this form, you accept that all data provided by you will be raised and stored electronically. Your personal data will be used strictly for the purpose intended and only for processing your inquiry, for example, by email. For further information please read the privacy statement.
Image source: AdobeStock, Westend61 / Daniel Ingold
Factoring explained simply
And this is how factoring works
Basic procedure.
Factoring is also known as invoice financing. Companies sell outstanding receivables from goods deliveries or services with payment terms to a factoring provider.
The diagram shows classic factoring:
You deliver your goods or provide your services as usual. You continue to issue your invoices directly to your customers.
You submit the invoices to the factor.
The factor immediately pays you the agreed amount.
Your customers transfer the invoice amount directly to the factor.
If a company exceeds the payment deadline, the factor takes care of dunning, collection, and legal action.
Image source: Deutsche Factoring Bank
In practice, there are various types of factoring. Companies can flexibly combine individual services. Factoring costs are variable and depend on the selected services, credit rating, and volume.
Your advantages of factoring financing with Deutsche Factoring Bank
Benefit from this versatile financial service and discover the potential of factoring:
In the event of rapid sales growth to cover increased financial requirements.
With high outstanding receivables and low equity.
In case of low creditworthiness due to lack of collateral.
If the customer is slow to pay.
For 100% protection against bad debts.
For better utilisation of account assignment options.
To improve the competitive situation by granting your customers longer payment terms.
Factoring gives you financial and temporal room for manoeuvre!
