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FAQ

FAQ

We have compiled a list of frequently asked questions about our factoring services. We strive to provide clear and concise answers to your most pressing questions, helping you understand how factoring can truly benefit your business.

General Questions

With deferred payment, the invoice is not paid immediately, but after the agreed-upon due date. For example, if you issue an invoice with a 30-day payment term, your customer has 30 days from the date of issuance to make the payment. This provides flexibility for your customers and business partners, but it also delays cash flow for your business.

Factoring is not a loan—you do not increase your debt, but simply speed up your access to funds. Approval is faster—unlike traditional financing, factoring has a simpler process and does not require collateral. Flexibility—you can choose which invoices to finance, without any long-term commitments.

The due date is the date by which payment on an invoice must be made. For example, if you issue an invoice with a 30-day payment term on March 1, its due date is March 31. After that date, it becomes past due.

Relevance to Your Business

Factoring is useful for businesses that sell to other companies on credit—such as those in retail, distribution, manufacturing, transportation, logistics, and other sectors. If your customers require long payment terms but you need cash immediately, factoring is an excellent solution for your company.

Invoice financing is a quick and easy solution if your customers’ businesses require long payment terms or if you’re fulfilling seasonal orders. Instead of waiting for customers to pay, you receive your funds immediately, giving you the flexibility to manage your finances more effectively.

With factoring, you can:

  • Access your money when you need it instead of waiting for long payment terms.
  • Pay your suppliers on time without straining your budget.
  • Take on more orders without worrying about late payments. Use your own revenue instead of relying on traditional financing.
  • Offer your customers more flexible terms without taking on unnecessary risk.
  • Don't let delayed payments hold back your growth! Apply now and get your funds today!
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Businesses that sell goods or services to other businesses can use factoring to obtain the working capital they need. Smart Factoring can help companies of all sizes in almost any industry.

Yes, factoring is a valuable financing option for startups and small businesses. At Smart Factoring, we understand the unique needs of these businesses and take the client’s creditworthiness into account during the approval process. This makes factoring accessible and beneficial for businesses of all sizes.

Factoring is a versatile financing solution that can benefit businesses across various industries. Almost any B2B company can use factoring services. Smart Factoring serves industries such as transportation, logistics, construction, manufacturing, apparel, textiles, fast-moving consumer goods, and many others. Whether you operate in these sectors or outside of them, factoring can provide valuable financial support tailored to the specific needs of your industry.

Process and Application

To pay one or more invoices, you need to follow a few simple steps:

  • Sign up —enter your company's information and your contact details. It only takes a few minutes.
  • Verify your identity with Eurotrust.
  • Upload the invoice and any accompanying documents. Invoices can be in the following formats: doc, pdf, scan, or image.
  • Submit your request —we'll process and review it within a few hours.
  • You will receive the funds —once approved, the amount will be transferred to the specified account.

You are going through our approval process. Please send us your invoices. Smart Factoring verifies the invoices and advances the funds to you (up to 90% of the invoice amount). We collect payments from your customer according to your payment terms. Once payment is received, the factor releases the remaining balance of the invoice.

Yes, at Smart Factoring, we understand that different customers may have different payment schedules. We offer you the flexibility to choose which invoices to include based on your specific business needs.

This flexibility allows you to prioritize customers who pay quickly or to effectively manage seasonal fluctuations. Whether you prefer to factor individual invoices or select specific customers, our personalized approach ensures that factoring is tailored to your individual needs.

Yes, you can finance your business with even a single invoice. Xpress Factoring gives you flexibility—there’s no minimum number of invoices required, which means you can get funding only when you need it, without any long-term commitments.

Financial Terms and Limits

Get a personalized quote. Contact Smart Factoring to discuss your industry, volume, and specific factoring service requirements.

We do not require a minimum invoice amount. We evaluate each customer and each request on a case-by-case basis to offer the most appropriate financing solution.

The limit depends entirely on the type of service you choose for your business: Xpress Factoring: Allows for the financing of individual invoices worth up to 25,564.59 euros (or 50,000 leva). Smart Factoring: There is no limit on the amount. The service is designed for regular sales and large projects, with the financing amount scaling with the actual size of your business.

We accept invoices issued in euros and U.S. dollars. If necessary, we can also consider transactions conducted in other currencies.

Risk Management and Security

With recourse factoring, you retain the credit risk, while non-recourse factoring transfers the credit risk to the factoring company.

It is very likely that your clients are already familiar with the concept of factoring and may have existing relationships with factoring companies.

When a debtor (your client) learns about your factoring agreement and raises questions about the process, it is important to provide clear and transparent explanations. Reassure them that you have strategically chosen a reputable company like Smart Factoring to manage and finance your receivables. By partnering with us, you can maintain a strong and reliable financial foundation, allowing your business to thrive.

If your customer does not make a payment on time, you have the following options:

  • Funding a new invoice to cover the expenses from the previous one.
  • We offer a 14-day grace period after the invoice due date. Once this period expires, you are obligated to repay the financing. During this time, we will work together to collect the amount from your counterparty.
  • During the 14-day grace period, we assist in notifying the payer and take steps to collect the amount. The process begins with a reminder even before the due date.


Important: If your customer has a history of late payments, please let us know in advance. That way, we can work together to find the best solution.

Smart Factoring EOOD processes personal data in accordance with the General Data Protection Regulation (EU) 2016/679 (GDPR), the Personal Data Protection Act, and the published Privacy Policy.

If you can't find the answer to your question, you can contact our team for assistance and get more information.

Scale and Complete Security for Large Projects

Financing with no fixed monthly minimum on invoices

Protection Against the Risk of Nonpayment by Customers

Full control and transparency over your payments

Apply Now

Freedom and Speed for Your Individual Invoices

Financing range from
to 25,000 €

No registration fees and no commitment

Approval and transfer of funds within 48 hours

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