Besides financing, factoring provides the benefit of outsourcing the collection of account receivables to the bank and hence reduces the time allocated to monitor the incoming payments.
“In the current economic context, the companies often face liquidity gaps, as incoming payments do not always meet the deadlines set with the commercial partners. By its defining components - financing, collection, monitoring - factoring is an advantageous solution, providing funding adjusted to companies’ sales volumes“, said Dana Feher, Head of Corporate Marketing and Product Development at Millennium Bank.
