If we want to compare factoring with a bank loan, we must first know what factoring actually means. The term factoring comes from the English Factura and means invoice. Factoring is a method of sales financing. Receivables from goods or services are sold to a factoring company, which also assumes the full credit risk. Medium-sized companies in particular use this source of financing, which is a sales-congruent working capital financing. Factoring and its advantages Genuine factoring reduces receivables and liabilities in a company's balance sheet. This means that the liquidity, but also the equity ratio, is improved. In addition, corresponding administrative tasks are no longer necessary in debtor management. This is where we talked about real factoring. But what is the diff
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