Factoring

Factoring

Unlock the cash tied up in unpaid invoices.

With factoring, you can have the money in your account within 24 hours of sending us the invoice for the goods supplied or the service provided.

Why choose factoring provided by KUKE Finance?

Factoring improves your company’s financial liquidity

Factoring provides instant access to cash tied up in unpaid invoices.

It saves you both time and cuts costs related to effective credit control

Factoring allows your company to be more competitive. You are able to offer longer payment terms to customers without hurting your company’s liquidity.

Factoring protects your company from bad debt

The factor takes on the risk of non-payment by your customers (in the case of non-recourse factoring).

Factoring is an easily accessible form of financing

Unlike conventional bank loans, factoring does not require collateral. Also, factoring requires fewer procedures and allows faster advancement of funds to the company.

It does not weigh down the balance sheet of your company

Unlike traditional bank loan (in cae of non-recourse factoring).

Factoring allows your company to be more competitive

You are able to offer longer payment terms to customers without hurting your company’s liquidity.

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Who is it for?

Factoring is suitable for all industries and market segments. It is the right solution for companies that:

sell on deferred payment terms (on trade credit)

they hold regular sales for a loyal customer base

need a flexible source of funding that can be tailored to their current needs

are looking for financing for their day-to-day operations other than a working capital loan

want to protect themselves against the risk of their customers becoming insolvent

wish to entrust the handling and management of their receivables to a specialist firm

What is factoring?

Factoring is a transaction in which a business sells its accounts receivable (invoices) to a factoring company, also known as a factor. In exchange, the factor immediately advances cash to the business.

Factoring is a comprehensive financial service available to companies of all sizes. In addition to providing instant access to cash, factoring combines credit risk protection, accounts receivables bookkeeping and collection services.

How does factoring provided by KUKE Finance work?

KUKE Finance agrees to purchase your outstanding invoice before its due date falls. In return, subject to the terms of the purchase set out in our agreement with you, we immediately advance up to 90% of that invoice value.

The remaining balance, in this case 10% of the invoice value, is available to you after we have received the payment from your customer. The entire process of sending invoice details and keeping track of payments can be managed online through our factoring service system.

Frequently asked questions

Can any business use factoring?

How long will it take for me to receive the money after submitting the invoice to KUKE Finance?

Can I use factoring for overseas clients?

Yes. Receivables from foreign counterparties can be covered by factoring. Export factoring at KUKE Finance is available in two forms: non-recourse factoring (with recourse) and recourse factoring (without recourse). In the latter option, in addition to financing the receivables, the factor assumes the risk of insolvency of the counterparties covered by the factoring agreement. This is possible thanks to the factor insuring the receivables themselves, or by utilising an existing receivables insurance policy taken out by the business with an insurer. Non-recourse factoring is a good solution when an exporter plans to start working with new customers and is unable to reliably assess their financial situation and ability to settle their liabilities.

Do you have trouble selecting the right solution for your business? Contact us!

Our consultant will help you choose the right package of solutions to support your company's foreign expansion.