What is Factoring
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:
Explanation of Steps
1. Sale of goods
The Supplier sells its goods or provides its services to the Buyer.
2. Assignment of accounts receivables
The Supplier assigns its accounts receivables towards the Buyer to Piraeus Factoring.
3. Financing of accounts receivables
Piraeus Factoring finances the accounts receivables which have been assigned thereto by the Supplier.
4. Collection of accounts receivables
Τhe Buyer pays to Piraeus Factoring the amount corresponding to the accounts receivables assigned to Piraeus Factoring for purposes of management and collection services.
Factoring Services
We offer comprehensive factoring services that enhance liquidity and support business growth in Greece and internationally.
Factoring Advantages
Direct Liquidity
- Direct Liquidity meeting the needs of the Supplier.
Strengthening of the Supplier's negotiating position
- Strengthening of the Supplier's negotiating position.
Reduction of operating expenses
- Reduction of operating expenses, due to the fact that all accounting and collection procedures are being performed directly by the personnel of Piraeus Factoring.
Minimization of the credit risk
- Minimization of the credit risk, along with the Supplier's coverage and compensation.
Minimization of the collection costs
- Minimization of the collection costs of the accounts receivables due to the sound and effective procedures of Piraeus Factoring.
Lower costs and faster process
- Lower costs and faster process in comparison to other collaterals, such as loans or letters of guarantee, etc.
Following the assessment of the buyers' solvency
- Following the assessment of the buyers' solvency, relative reliable information is provided to the Supplier by the personnel of Piraeus Factoring.
Increase of competitiveness
- Increase of competitiveness, especially for SMEs which acquire direct funding and liquidity.
Personalized support
- Personalized support, management and collection of the accounts receivables according to the credit policy and commercial practice of each Supplier.
Effective service
- Effective service from the well-trained, experienced and specialized executives of Piraeus Factoring.
Flexibility and speed
- Flexibility and speed guaranteed by the sophisticated computerized system of Piraeus Factoring.
Improvement of the sales growth potential
- Improvement of the sales growth potential, through the open account for buyers.
Coverage of the Supplier's activities abroad
- Coverage of the Supplier's activities abroad, due to the international prestige of Piraeus Factoring.