What is Factoring?
Factoring is a short-term trade financing instrument. Its main advantage over the others is that it provides financing capacity to customers as they invoice.
As such, we can say that whenever a customer has outstanding invoices, they can factorise them and get financing and some other additional services.
What are the benefits of Factoring?
Eliminates uncertainty on the collection date.
Makes it possible to advance the value of sales from the time the invoice is issued.
Offers flexible financing.
Without changing your customers' payment method, who simply pay Santander.
In the WITHOUT RECOURSE mode; also covers the insolvency risk, reduces the accounts receivable heading and the financing is not shown on the customer's CIRBE.
What types of Factoring are there?
Factoring Without Recourse: Line of financing with transfer of invoices of drawees chosen by the customer. They transfer all their sales to us and we notify the drawees to directly pay Santander Factoring and Confirming (SFC).
In the case of non-payment, the customer is charged.
Factoring Without Recourse: Line of financing with assignment of drawee invoices chosen by the customer and classified by SFC. They transfer all their sales to us and we notify the drawees to directly pay Santander Factoring and Confirming (SFC).
SCF assumes the risk of insolvency.