Products · Factoring
We keep you agile.
Do you want to seize a good opportunity but don't have the means ready?
Good order situations are of no help if the money only arrives in 60 - 90 days.
Long payment terms tie up liquidity and slow growth. Cash is King – liquidity is every company's lifeblood.
What factoring does for you.
Strategy & Working Capital
A sustainable concept for optimising all cash flows.
Alternative financing
Factoring, forfaiting, leasing, or purchase financing.
Everything from one source
Complete communication with providers — you stay focused.
Types of factoring
Which variant fits your business?
Non-recourse factoring
The factor takes full default risk. Balance-sheet relief.
Silent factoring
Your debtor learns nothing. Customer relationship stays intact.
Reverse factoring
Suppliers are paid early – you benefit from discounts.
Purchase financing
Financing without immediate capital commitment.
What clients say.
“In the area of factoring, rcc guided us very systematically through all the options. The solution fits our business perfectly and noticeably relieves us in our daily operations.”
W. Burgbacher Holzwerk GmbH & Co.KG, Mittelstand company
“We have been working closely with Ms. Renz for years and appreciate the personal, professional, and holistic approach of the specialized brokerage house. Particularly convincing is their expertise in factoring solutions and credit insurance. They provide tailored concepts that stabilize our liquidity and reliably secure the default risk. It's great to have rcc as a partner.”
FARA Personal Bad Homburg GmbH, Textile industry
Frequently asked questions
Factoring allows you to sell open receivables to a third party – the factor – who pays you immediately (less a fee). Factoring serves three functions: Financing – your receivables are converted to cash, easing your liquidity situation. Del credere – the factor buys your receivables on a non-recourse basis, taking 100% of the default risk. Service – the factor can take over tasks such as posting incoming payments or dunning.
A factoring company (factor) purchases your receivables against your customer and usually also assumes the default risk and the collection. In return, the factor acquires the right to payment and pays your company the bulk of the invoice amount immediately (typically 80–90%). The remainder is paid once your customer has settled – less a fee. Your benefit: immediate liquidity, risk transferred, effort reduced.
With factoring, your company gets liquidity immediately instead of waiting for long payment terms. At the same time, you reduce your default risk and unburden your accounting – the factor handles receivables management.
Factoring suits any company that regularly sells on invoice and has to grant long payment terms. Typical users come from B2B – e.g. trade, manufacturing, logistics, or services. Companies benefit especially when they need liquidity quickly, want to avoid payment defaults, want to unburden their accounting, and generate annual revenues from ~€250,000–500,000 upwards. Factoring makes particular sense for growing companies that want to stabilise cash flows and transfer risk.
The costs of factoring typically consist of two components: the factoring fee and the interest on the pre-financing. The factoring fee usually ranges between 0.5% and 2.5% of the invoice amount, depending on annual revenue, industry, and debtor risk. On top of that, interest on the pre-financed amount is often in the range of 4% to 8% p.a. Actual costs depend heavily on the business model, receivables volume, and customer creditworthiness. An individual quote provides clarity – factoring is often cheaper than expected.
Factoring combines liquidity and risk transfer in one: you sell your receivables to a factor and receive immediate liquidity (usually 80–90% of the invoice amount). The factor assumes the full default risk (in non-recourse factoring). The risk transfer happens immediately at the moment of sale – no recourse to you if the customer does not pay. Trade credit insurance is protection against receivable loss: you remain the owner of the receivable and keep control over invoicing and dunning. In case of insolvency or protracted default the claim event occurs – typically after a waiting period (e.g. 60 or 90 days). You usually recover up to 90% of the receivable amount.
In non-recourse factoring the factor assumes the default risk of the receivable (del credere). In recourse factoring the company carries the risk itself – it still receives liquidity but remains liable if the customer does not pay.
In disclosed factoring the customer knows the receivable has been sold to a factor – payment is made directly to the factor. In undisclosed (silent) factoring the sale of the receivable remains invisible to the customer – they continue to pay the original company.
In full-service factoring the three functions of financing, risk protection, and service are all taken over by the factor. In addition to volume-aligned financing of receivables and the avoidance of receivable losses, the customer saves additional costs by outsourcing debtor accounting as well as dunning and collections.
Once all required documents are in place, factoring can be implemented within 30–60 days.
There are various factoring types, e.g.: full-service factoring, in-house factoring, maturity factoring, non-recourse/recourse factoring, disclosed/undisclosed factoring, export factoring.
In in-house factoring the customer runs debtor accounting and dunning in trust for the factor. Posting customer payments and commercial dunning up to the final reminder stay with the customer. If the final reminder is unsuccessful, the case is handed over to the factor for further processing.
In maturity factoring the company receives the invoice amount on the agreed due date – not immediately after invoicing – but often at more favourable terms.
Export factoring enables companies to secure and pre-finance receivables from abroad. The factor also takes on country and currency risks, e.g. for deliveries outside the EU.
In purchase financing – also called trade finance or supply-chain finance – a purchase financier first acquires your purchase, makes the goods available to you, and grants you an extended payment term. You gain an additional financing line and also benefit from early-payment discounts.
Project financing is used to fund defined, time- and scope-limited initiatives. It is tied not to a company but to a project that is expected to be self-sustaining later. The risk is distributed across multiple parties.
Cash is King! – Liquid assets are the elixir of life.
We will find a suitable solution.