Factoring as your benefit
Your investment in financial security
Our goal is to work with you as our partner. That is why transparent costs and competitive terms are essential to us. If needed, we are happy to tailor our products and services specifically to match your company’s individual requirements and size.
Factoring costs
Factoring costs are based on:
- Your annual revenue
- Use of collection services and/or credit insurance
- The credit quality and structure of your accounts receivable, as well as the payment periods of outstanding receivables
- Your business model and your company’s current financial situation
Total costs for factoring
The total costs of factoring are comparable to those of a working capital loan and consist of the following components:
- Factoring fee – depending on the type and scope of the service agreed upon with Intermarket Bank
- Interest – for the advance payment of receivables
- Limit fee – for granting insurance limits under credit insurance policies
- Other fees – such as myintermarket fees or payment transaction fees
Factoring cost example based on a medium-sized company
The advantage of factoring can be easily illustrated using the example of a medium-sized company. A trading company generates annual revenue of EUR 3.5 million. Customers are granted a payment period of 15 days and a 3% early payment discount for invoices paid within 7 days. In practice, customers typically pay after 30 days on average, leaving almost EUR 300,000 locked in accounts receivable. As a result, the company lacks sufficient liquidity to take advantage of supplier discounts. By using factoring as a financing option, the company can use the increased liquidity to benefit from early payment discounts when purchasing goods from its own suppliers.
These figures show how factoring can strengthen your business
Factoring PLUS
Factoring FINANCE
Factoring for your company: get a quick overview with our factoring simulator
What does factoring mean for your cash flow? How can it improve your balance sheet profile, equity ratio, and debt-to-equity ratio? With just a few key figures from your company, our Factoring Simulator will provide an instant initial overview of the benefits factoring can bring to your business. In the next step, you can use our online Factoring Quick Check, to receive a customised detailed offer within 48 hours.
Factoring potential benefits:
- Increased liquidity
- Reduced reliance on the working capital line
- Ability to take advantage of early payment discounts
- Minimisation of default risk
This may lead to:
- A reduction of the balance sheet size
- Improved financial ratios
- A stronger credit rating
- Support for dynamic business growth