Invoice Financing (Factoring) – Get Your Money Now, Don't Wait for the Due Date
Why wait for your money for weeks or months? Factoring (invoice financing) converts your receivables into cash in as little as 24 hours. Through us, you can finance invoicing up to 1,000,000 euros per month.
How does it work? You send an invoice to your customer and immediately receive money to your account (e.g., 95%). You receive the rest when the customer pays. The service scales automatically with your sales.
We offer two models:
- •Credit risk with the company: A more affordable option. If the end customer doesn't pay the invoice, the responsibility for payment returns to you.
- •Credit risk with the financer: A safer option. The financer bears the risk and insures receivables if your customer is insolvent or goes bankrupt.
But is selling invoices worth it? If your margins are small, factoring costs can eat into your profit. On the other hand, if growth is strong, cash is more valuable than waiting.
Don't guess – let Trusty find the best option. Our AI CFO calculates whether invoice financing is the most profitable way for you to speed up cash flow, or if a credit line would be a more affordable buffer.
Trusty's quick analysis: When does factoring work?
Factoring is a B2B company's superpower when sales are strong but cash lags behind due to long payment terms.
Choose factoring when:
- •Long payment terms: Your customers are large companies that pay slowly.
- •Growth is fast: You need money immediately for raw materials or salaries for new orders.
- •You want to outsource: You want the financer to handle invoice monitoring and collection.
Consider another option when:
- •Your customers are consumers (factoring usually doesn't work in B2C).
- •Invoicing is very irregular (consider a credit line).
Traditional banks or finance companies?
We compare both. The solution depends on your volume and customer base.
Traditional banks:
- Often the most affordable price, but require a large invoicing volume (often over €100,000/month) and a very stable customer base.
- The process is heavier and regulation stricter.
Finance companies:
- More flexible and faster. They also serve smaller companies and accept a more diverse customer base.
- Often enable so-called silent factoring, where your customer doesn't even know about the financing arrangement.
Frequently asked questions about invoice financing
(Click on a question to see the answer)
How much does factoring cost?
The cost typically consists of a processing fee and interest. The total cost is typically 1–4% of the invoice total. The price depends on the invoicing volume, your customers' creditworthiness, and who bears the credit risk.
Do my customers notice that I'm using financing?
Not necessarily. In silent factoring, customers still pay directly to your account (which is pledged to the financer). In open factoring, the invoice has a transfer clause and a new account number.
Do I need collateral?
Usually not. The invoice receivable itself acts as collateral. A personal guarantee is often not required to the same extent as with loans, as the financer primarily assesses your customers' ability to pay.
What if a customer doesn't pay?
It depends on the agreement. If the credit risk is with the company, you have to return the money to the financer. If the credit risk is with the financer (credit insured), the financer bears the credit loss risk, but the service price is slightly higher.
Can I finance only some of my invoices?
Yes. You can do so-called spot factoring and sell only individual large invoices, or agree on continuous financing for the entire invoice portfolio, which is usually more affordable in terms of pricing.