Factoring is the repurchase of quality undue trade receivables ranging from 80% to 98% of nominal invoice value for invoices originally due up to 180 days.

The main characteristics of factoring are: incentives to small and medium sized entities, liquidity improvement for businesses, leverage for strong small business development, in short – an alternative form of financing tailored to the entrepreneurial needs. Factoring offers new possibilities in Client financing, facilitates access to short term operational financing and offers easier administration and documentation processes.


Take advantage of the benefits of factoring:

  • Better opportunities to finance your business: Factoring enables you fast and easy access to sources of external financing, without reducing your credit rating and limiting your Bank overdrafts.
  • Improved liquidity and cash flow management: Financing through factoring improves working capital (factoring of receivables before the due date enables earlier cash inflow), facilitates the entities growth and sales and consequently cash flow planning easier.
  • Improved financial position of your Company: The Factor (a company who takes over the Clients receivables from customers, created through the sale of products or services with deferred payment) transforms your trade receivables to cash.
  • Savings of time and money: By transferring administrative monitoring of factored receivables to Erste factoring Ltd. Zagreb you can significantly reduce the costs of your business which affects not only the rentability of your enterprise, but also the better payment discipline of your customers.
  • More competitive terms of sale: Transfer of trade receivables to the Factor allows crediting of your Customers without the need for additional guarantees which makes your company more competitive in the market.
  • Access to funds regardless of credit rating: Depending on the type of factoring, the decision on the approval of funding by the Factor depends on the quality of your trade receivables, while the risk remains with the debtor, as opposed to the traditional banking business, where the decisions on approval of funding depends on the creditworthiness of the Client.