Recourse factoring

Recourse factoring is the perfect solution for your company, if you are looking for a way to fund your business growth or simply improve your liquidity. It is also useful for generating working capital for businesses with strong seasonal fluctuations.

Recourse factoring means an overdraft facility with the company’s account claims as security. It allows you to fund both domestic and foreign export receivables. Additional services include taking on credit insurance to cover for buyer risk and collection services.

Benefits for your company:

  • Improve your liquidity
  • Buyers are more punctual with their payments when the finance company handles first collection
  • The amount of finance will adapt to the needs of your business
  • Improve your company’s competitiveness by offering a variety of payment terms
  • Streamline your operations by outsourcing routines
  • Use our additional services to outsource post-collection to our partners and minimise buyer risk by taking on credit insurance on your export receivables.

Recourse factoring in brief

Your company will typically be provided with an advance of 80% of the value of the accounts receivable transferred to the finance company no later than on the next banking day and the rest when the buyer pays the invoice. Recourse factoring is available in Netbank..

Recourse factoring is suitable for

  • B2B invoicing
  • when the customer base is mostly established
  • the annual value of invoicing is at least 700,000 euros (incl VAT)
  • domestic and export receivables.

Recourse factoring is not suitable for: 

  • consumer invoicing
  • start-ups
  • invoicing based on milestone payments.

Export receivables

Recourse factoring is a handy solution for the challenges of exports; lack of working capital arising from long payment terms and the risk of non-payment by foreign buyers.

Benefits for your export company:

  • good liquidity despite long payment terms
  • elimination of 90% of the credit loss risk with credit insurance
  • easier administration of export trade.