volumele de factoring revers în primele 6 luni, la nivelul pieței
Questions about factoring
If, at request, only 80% of the invoice amount is given, does this mean that the remaining 20% is retained by the institution providing the factoring services?
According to the type of product you use: you receive the 20% different (net of any of your debts to the Factor under the Factoring Agreement) at collection by the Factor from the Debtor.
When the invoice is not collected within the agreed term, and the Factor has a right of recourse, this shall recover from you the amount initially advance, and it shall rest with you to recover the full amount from the Debtor; for a non-recourse facility, when the coverage percentage is, for instance 100%, and the financing percentage 80%, the Factor shall transfer to you, on the date set under the Factoring Agreement, the difference of 20% (net of any of your debts to the Factor under the Factoring Agreement).
How can I be sure that I will promptly collect the receivables? In the end of the day, the longer these remain outstanding, the higher the interests you will charge.
To survive as factors, we are bound to offer our clients services of a quality beyond reproach.
Otherwise, we will see our clients leaving us fast, and this would affect us in a manner that cannot be compensated by the very small amount we would gain from a slow collection of receivables. At the same time, in some instances, we assume the risk of non-collection. It is common knowledge that, the longer a receivable remains not collected, the lower the chances to ever recover the money. We don't want to add to the risk thus assumed. On the other hand, the costs of a factoring operation consist of the interests and fees charged by the factor for the services rendered, and these income increases proportionally with the speed of receivable collection.
Do you also finance the VAT, or only the net amount of the invoices?
Factoring relies on the purchase by the Factor of your account receivables with a given debtor.
The amount of the receivable includes also the VAT, and the Factor collects, on the due date, the entire amount of the receivable and not only the net amount thereof. The entire receivable is financed, including the VAT, where necessary.