What is factoring?
What is factoring good for?
How does factoring work?
Real simple!
Imagine you sold a product to a large supermarket chain, to a developer, to anyone who can dictate the rules for when and how he can pay. What usually happens next in such cases? You deliver the goods and wait up to 180 days for payment for it. And instead of producing or ordering the next batch for sale, you have to wait or ask for loans from banks, because you do not have working capital to produce the next batch.
But here VIMcredit comes to the rescue - we, in fact, redeem your invoice and become a creditor for this debt ourselves, providing you with 75% of its value at the time of assignment. After that, you have working capital, and instead of you, we are waiting for the buyer to pay this invoice of yours.
After your customer pays the invoice to us, we pay you the remaining 25% minus our fee. Thus, thanks to factoring, you always have working capital on hand for faster work without months of waiting for payment. Unlike a loan, in factoring there is no need to provide collateral in order to receive money. Receivables, that is, future earnings, become collateral.
