Factoring is a set of financial services which covers the needs of companies that sell their products or services on (short-term) open account terms to those of their customers that exhibit a recurring buying behavior.

It is a tripartite interaction between a Supplier, his buyers and a specialized financial intermediary (the “factor”) who undertakes the book-keeping side, the administration and collection of the invoices issued by the seller. Furthermore, the factor may make advance payments on these invoices and may conditionally undertake the covering of the Supplier’s credit risk.

Piraeus Factoring, offering  a set of services, provides integrated and effective solutions for: 
  • Direct Financing of the Supplier's accounts receivables
  • Management of the accounts receivables
  • Collection of accounts receivables   
  • Assumption of the credit risk (credit risk coverage arising from the buyer’s failure to make payment)
  • Assessment of Buyer’s credit worthiness

 Explanation of Steps 

  1. The Supplier sells its goods or provides its services to the Buyer
  2. The Supplier assigns its accounts receivables towards the Buyer to Piraeus Factoring
  3. Piraeus Factoring finances the accounts receivables which have been assigned thereto by the Supplier
  4. Τhe Buyer pays to Piraeus Factoring the amount corresponding to the accounts receivables assigned to Piraeus Factoring for purposes of management  and collection services