Most factoring companies in Poland offers the same solutions as banks. However, their attitudes towards potential factorers are different.
A factor dependent on the bank pays more attention to the entrepreneur’s financial standing. It has certain advantages and disadvantages. Companies that hold a credit or leasing in another bank may usually count on factoring on attractive terms. On the other hand, these terms may be less attractive for new companies. Due to the scale of activity, banks are more often interested in mass transactions and usually offer their services to companies with higher turnover.
In turn, non-bank institutions care more about the value and quality of portfolio of receivables. For that reason, they are more favourably inclined towards the factorer’s financial results and they are more focused on the evaluation of its customers. In practice, this means that factoring may be granted to a small company but which is cooperating with a big and reliable entity (though the one that makes its payments with delays).
Apart from that, non-banking institutions often offers non-standard solutions for the SMEs sector. They may also be interested in financing debt portfolios of low values or even single invoices. Receivables may be even slightly overdue, then a given transactions is linked to a debt collecting service, Other additional options involve, e.g. short-term loans or discounted bills of exchange.
As far as prices are concerned, they are diversified depending on the chosen offer, which is mainly customised to a specific company. it is worth considering various variants in both types of institutions and thoroughly analyse all the terms.
When choosing a factoring company, the most important is to decide to selecting a reliable and professional entity – you can find such entities either from among the banks or non-banking institutions.
Published on: 14 November 2016