Factoring with Intermarket Bank

Faster and more efficient access to more liquidity

Turning outstanding receivables into revenue fast: that’s the goal of many companies. Factoring makes this possible, secures financial flexibility, and creates tangible business advantages.
As a flexible financing option for companies, factoring is becoming increasingly popular in today’s business world. It is not only suited for companies with stable sales, but also for those experiencing rapid growth or seasonal fluctuations in revenue. With factoring, high accounts receivable and long payment terms are a thing of the past.

We at Intermarket Bank, a company of Erste Group, have been one of the leading factoring specialists in the Austrian market since 1971. Drawing on many years of financing experience, outstanding service, and transparent products and solutions, we are committed to providing greater financial security for your company.

What is factoring?

Factoring is a modern and flexible financing solution for your company.By selling your receivables, you gain quick and easy access to additional cash. This gives you immediate liquidity, regardless of your customers’ payment terms.
Here’s a brief overview of how factoring works and the key benefits it provides.

How factoring works. An explanation in 5 simple steps:

  1. The supplier delivers goods or services to the buyer and agrees on payment terms with them.
  2. The supplier sells the receivables arising from this transaction to Intermarket Bank under a factoring agreement.
  3. Intermarket Bank pays an advance of up to 80–90% of the gross invoice amount (including VAT) of these receivables to the supplier.
  4. Upon maturity, the buyer pays the invoice to Intermarket Bank or to an account assigned to Intermarket Bank. If requested, Intermarket Bank AG can handle the collection process.
  5. Once the invoice has been paid, the supplier receives the remaining balance from Intermarket Bank (less financing costs).

High liquidity offers a wide range of benefits: it strengthens relationships with your suppliers and your bank, as invoices are paid on time and late payment fees or interest on arrears can be avoided.
Additional liquidity is also essential during investment phases or when implementing expansion plans. Common causes of liquidity problems are high levels of outstanding receivables, long payment terms, seasonal fluctuations in revenue, or payment defaults. In these situations, factoring is an ideal financing solution for increasing liquidity, exactly when you need it. 

Benefits for your company

Our factoring products

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