Factoring allows you to ensure a positive cash flow
In addition to leasing financing, we at One Leasing Finland ensure positive cash flow for our partners. Cash flow is the most important thing for companies and we have the solution: factoring.
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What is factoring?
Factoring finance refers to the pledging or selling of trade receivables, i.e. invoices sent by the seller, against financing. Factoring can therefore be done in two ways, either by pledging the sales invoices against financing or by selling them directly to the financing company.
Pledging of sales invoices
By pledging sales invoices, you can receive up to 90% of your sales invoices up front and the rest when the customer pays the invoices to the financier. In this way, you retain the credit risk.
Selling of sales invoices
By selling your sales invoices to a finance company, you receive the full amount of your trade receivables, fewer interest costs, directly into your company’s account. This so-called American factoring transfers the credit risk to the financier. By selling your invoices to a finance company, the finance company takes care of the entire invoicing process for you, from invoicing to the possible collection.
Factoring ensures smooth cash flow and adds flexibility to your business
Factoring makes your cash management easier and allows you to offer your customers longer payment terms. In today’s market, offering longer payment terms can be a crucial and decisive competitive advantage. Having a finance company handle the entire invoicing process also reduces your own workload.
At One Leasing Finland, we have handled the factoring for many of our partners and have the ability to take care of the whole process from start to finish.
Feel free to contact us and we will help!