Marko Gajovic

Gamico Faktoring

Factoring is a financial transaction in which a business sells its account receivables (which one company has towards the other) to a third party (called a factor) at a discount in exchange for the instant money which will finance the continuation of the work. Factoring differs from a bank loan in three main ways. Firstly, the emphasis is on the value of the receivables (in the basis of the financial assets) rather than on the solvency of the company. Secondly, factoring is not a loan – it is the purchase of your receivables. Finally, a bank loan implies two parties, whereas factoring involves three of them.