Free up your cash flows
don't leave your business to unpredictable market movements.
Plan your business. Financial stability and sustainability are key success factors for any business. Some opportunities can't wait. Invest today in your knowledge and have financing alternatives ready when business expects it from you.
90%
collection within 24h
70%
reduction in collection delays
Direct Factoring
Direct factoring represents the purchase of short-term, non-due, monetary receivables arising from issued invoices and contracts for the sale of goods and/or provision of services, concluded between our client, as the creditor of the receivables, and another legal entity or entrepreneur, as the debtor of the business.
Direct factoring can be without recourse and with recourse. Factoring without recourse is a type of business where the factor bears the risk of collectibility of receivables from the debtor. Factoring with recourse means that in addition to the primary debtor from the business relationship, the risk of collectibility of receivables is also borne by the assignor.
Direct factoring example
Direct factoring provides:
- increased liquidity - money is received immediately without waiting for a 60-day payment term
- accelerated cash flows - inflow of funds before due date
- possibility of extending payment terms to debtors and installment payments
- increased sales growth
- planning of investment flows
- support for rapid growth of business activities
Reverse Factoring
Reverse factoring represents the assumption of invoices from the debtor and his payment obligations to creditors of short-term, non-due, monetary debts arising from contracts for the sale of goods and/or provision of services concluded between our client as the debtor and another legal entity or entrepreneur as the creditor of the receivables.
Reverse factoring example
Reverse factoring provides:
- settlement of debtor's obligations on time or ahead of time
- possibility of paying the factoring company in installments
- creditors receive money on time or before the due date
- achieving credible position with suppliers
- gaining opportunities for price reduction and better negotiating positions
- managing and planning cash flow
- planning investments and business development
International Factoring
International factoring represents the sale of receivables arising from foreign trade in goods and/or services.
It is performed in:
- single-factor system, when one factor participates in the factoring business
- two-factor system, when two factors participate in the factoring business, one in the Republic of Serbia, and the other headquartered abroad.
International factoring can be direct and reverse:
- International direct factoring represents a type of direct factoring in which the assignor is a domestic legal entity or entrepreneur, and the debtor is a foreign legal entity, in which the receivable is purchased and its collection is performed from abroad.
- International reverse factoring represents a type of reverse factoring in which the debtor is a domestic legal entity or entrepreneur, and the creditor is a foreign legal entity, in which the factor settles the assumed obligation to a person headquartered abroad.
Direct factoring with foreign buyer example
Reverse factoring with foreign supplier example
International direct factoring provides:
- increased liquidity - money is received immediately without waiting for a 60-day payment term
- accelerated cash flows - inflow of funds before due date
- possibility of extending payment terms to debtors and installment payments
- increased sales growth
- planning of investment flows
- support for rapid growth of business activities
- opportunity for additional development of cooperation with foreign debtors
International reverse factoring provides:
- settlement of debtor's obligations on time or ahead of time
- possibility of paying the factoring company in installments
- creditors receive money on time or before the due date
- achieving credible position with suppliers
- gaining opportunities for price reduction and better negotiating positions
- managing and planning cash flow
- planning investments and business development
Future Factoring
Future factoring is a financial service for buying and selling existing or future short-term monetary receivables arising from contracts for the sale of goods or provision of services in the country and abroad. The subject of factoring can be any existing non-due or future, whole or partial monetary receivable that arose from a contract for the sale of goods or provision of services. Future receivables can be the subject of factoring only if they are determinable and if the Individual factoring contract contains information about who will be the debtor of such receivables.
Future factoring example
Future factoring provides:
- obtaining money after concluding a contractual relationship with your debtor
- debtor gains the possibility of settling obligations in installments
- increase in sales due to negotiating conditions for settling obligations
- significant increase in liquidity
- planning and managing cash flows
- investing in business development.
Project Financing
Project financing represents a form of financing where the dynamics of the contractual relationship are known in advance and it lasts longer than one invoice. The factor takes on, by agreement, the financing of part or the entire project, through the purchase of receivables or assumption of debts. The documentation that accompanies this type of financing is the documentation for direct and reverse factoring.
Invoice 1
Invoice 2
Invoice 3
Invoice 4
Invoice 1
Invoice 2
Invoice 3
Invoice 4
Project financing example
Project financing provides:
- liquidity during the project duration
- no slowdown in cash flow
- the client is not exposed to additional project financing from invoice to invoice, until their collection begins
- the client does not make monthly debt payments, but the factor does this by assuming obligations, and the client negotiates settlement with the factor
- no additional financial exposure from the client following the project and obligation payments