Frequent questions

Factoring allows businesses to meet their short-term financing needs through the management and financing of their invoices and checks. In other words, a business paid by its buyer/customer on 90 days credit is able to receive from Flexfin a large part of the expected collection «up front» immediately increasing the liquidity of the business. The monitoring and collection of receivables is undertaken on the business’s behalf by Flexfin which will directly transfer the collected amount to the company’s bank account upon collection (minus any finance amount and other costs and commissions).

There are many advantages in using factoring including indicatively the below:

1. Allows companies to bridge the gap between the time they deliver the goods or accept an order and the time of payment by their clients.
2. Given that factoring relies on the receivable it is often a more efficient financing tool for companies than traditional unsecured lending products.
3. Centralizes collection and offers cashflow management tools.
4. Factoring is exempt from the contribution of law 128/75 and hence has a competitive versus lending products offered by the banks.