Frequently Asked Questions

We've compiled a comprehensive list of common questions and concerns related to our factoring services. We aim to provide clear and concise answers that address your most pressing inquiries, helping you understand how Smart Factoring can truly benefit your business.

Invoice factoring, also known as accounts receivable financing, is an alternative funding option that provides fast access to working capital for businesses. Learn how Smart Factoring can help your business grow. 

With recourse factoring, you retain credit risk, while non-recourse factoring transfers credit risk to the factoring company. Choose the option that suits your business needs. 

Discover how invoice factoring can benefit businesses in different industries. Businesses that are selling goods or services to other businesses can use invoice factoring to gain necessary working capital. Smart Factoring can help businesses of all sizes in almost any industry.

Learn how the factoring process works with Smart Factoring.  

  • You go through our approval process
  • Submit your invoices
  • Smart Factoring verifies the invoices and advances you the funds (up to 90% of the invoice amount)
  • The factoring company collects payment from your customer according to your payment terms
  • When payment is received the factor releases the remainder of the invoice amount

Get a personalized quote for factoring fees. Contact Smart Factoring  to discuss your industry, volume, and specific requirements for invoice factoring services.

Absolutely! International or export factoring is a popular product among companies with foreign exports. Some even consider it export insurance. Additionally, it can provide cash flow support to withstand longer payment periods in trade deals and can help make trade go more smoothly.

Explore how international factoring can benefit companies engaged in foreign exports. Ensure cash flow support for longer payment periods and smoother trade transactions. International factoring can act as export insurance.

It’s highly likely that your customers are already acquainted with the concept of factoring and may have existing relationships with factoring companies. When a debtor (your customer) becomes aware of your factoring agreement and raises questions about the process, it’s essential to provide clear and transparent explanations. Assure them that you have strategically chosen a reputable company like Smart Factoring to manage and finance your account receivables. By partnering with us, you can maintain a strong and reliable financial foundation, allowing your business to thrive.

Faster processing, greater flexibility, and more control over funds make factoring an attractive financing option for businesses. Discover the advantages of factoring over traditional bank loans.  

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

Factoring is a versatile funding solution that can benefit businesses across different industries. Almost every business-to-business company can utilize factoring services. Smart Factoring serves industries such as transportation, logistics, construction, manufacturing, clothing, textile, FMCG, and many more. Whether you operate in these sectors or beyond, factoring can provide valuable financial support tailored to your industry’s unique needs.

The advance rate in a factoring agreement is determined based on several key variables:

  • The client’s track record: A history of timely and consistent payments from the client to their customers plays a role in determining the advance rate.
  • The customer’s track record of paying in full: The payment history of the client’s customers contributes to assessing the advance rate.
  • The financial stability of your company: The financial health and stability of the client’s business are taken into account.
  • The soundness of the delivery/payment confirmation documents: The quality and reliability of the documentation verifying deliveries and payments impact the advance rate.
  • The client’s industry: Different industries may have varying risk profiles, affecting the advance percentage.


At Smart Factoring, we carefully evaluate these factors to determine the optimal advance rate for each client. Contact us today for personalized assessments tailored to your specific circumstances and industry.

Yes, at Smart Factoring, we understand that different customers may have varying payment speeds. We offer you the freedom to select which invoices to factor based on your specific business requirements. This flexibility allows you to prioritize faster-paying clients or manage seasonal fluctuations effectively. Whether you prefer to factor single invoices or hand-pick specific clients, our customizable approach ensures that factoring aligns with your unique needs.

At Smart Factoring, we prioritize professionalism and customer relationships throughout the payment collection process. As a factoring company, not a debt collection agency, we understand the importance of maintaining positive connections with your customers.Our team is committed to handling payment collection in a professional and courteous manner. We act as your partner, working alongside you to facilitate smooth payment processes. Our goal is to ensure that your valuable business relationships remain intact and unaffected.

In recourse factoring, the business selling the invoices retains the credit risk. If a customer fails to pay the invoice, the responsibility for repayment falls on the business. On the other hand, in non-recourse factoring, Smart Factoring assumes the credit risk. If a customer fails to pay, the business is not held responsible for repaying the factoring company.

Got Questions About Our Factoring Services?

We're here to provide the answers you need. If you didn't find what you were looking for in our FAQ section, our team of knowledgeable professionals is ready to assist you. Click the button below to get in touch with us, and we'll gladly address any inquiries you may have. At Smart Factoring, we prioritize your satisfaction and are dedicated to ensuring you have all the information necessary to make informed decisions about our services. Contact us and let us help you navigate the world of factoring with confidence!

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