
Factoring – Free up capital and improve cash flow
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Factoring companies and their terms
Below is a list of the factoring companies that Krea compares. Last updated on March 20, 2024.
Factoring with recourse
We compare two factoring companies that purchase invoices with recourse. Factoring with recourse means that, under certain conditions, unpaid invoices are returned to the seller.
Factoring without recourse
We compare six factoring companies that purchase invoices without recourse. Factoring without recourse means that the factoring company assumes the entire credit risk once you’ve sold your invoices.
Method: More about our analysis
Our list of factoring offers is updated monthly and includes information from the factoring companies we collaborate with.
Factoring – what is it and what options are available?
How does factoring work?
Factoring means that a company sells or uses its invoices as collateral with a factoring company, which pays out a large portion of the invoice amount upfront—usually between 70–90%. The customer then pays the invoice directly to the factoring company, which handles all administration, reminders, and debt collection if necessary. Once the customer has paid the invoice, the company receives the remaining amount, minus a fee.
With factoring, a company can quickly unlock capital, providing more flexibility for investments and new business opportunities without having to wait for customer payments.
The different types of factoring:

Invoice discounting
You retain responsibility for the invoices but use them as collateral with a factoring company.
You receive 70–90% of the invoice value upfront, and the remainder is paid out once the customer has paid.
You are responsible for collecting payments and handling any reminders.
Sell invoices/Invoice purchase
You sell your invoices to the factoring company and receive the full amount upfront.
The factoring company takes over the responsibility of collecting payments from your customers.
The factoring company takes over both the responsibility and the risk associated with the invoices.
Our advisors
Our most common questions about factoring
What types of invoices can I sell through factoring?
What fees are there with factoring?
What are the requirements for applying for factoring?
Get an estimate of your factoring cost
Pros and cons of factoring
Factoring can be an effective tool to quickly release capital and improve cash flow for your business. However, like all financing solutions, there are both advantages and disadvantages to consider.
Below, we cover the key aspects of factoring to help you make an informed decision.

Pros:
Quick access to capital: You get paid immediately when you issue a new invoice and don’t have to wait 30-90 days.
Less administration: You can eliminate administrative tasks, including reminders and debt collection management.
Flexibility: With factoring, you can access financing based on your invoices, making it easier to grow in line with sales.
Cons:
Higher costs: Factoring can often be more expensive than other forms of financing, such as a traditional business loan.
Loss of control: By selling invoices, you give up some control over customer relationships, as the factoring company takes over the management of payments.
Revenue requirements: Many factoring companies have minimum revenue requirements, making factoring less suitable for startups and smaller businesses.
Invoice financing in three steps
Upload your invoices or ledgers
Create the application yourself or book an appointment with one of our advisors free of charge.
We optimize your application
We ensure that your company is presented in the best possible way. Only 1 credit report is taken.
We help you choose the best offer
Sign the agreement and get the money paid out. Usually within 1-10 days.
We have helped over 20 000 businesses
Since 2018, we have helped more than 20 000 companies find better terms and take their business to the next level. Read more about Krea.
SEK 2.2 billion
How you get better terms on factoring with Krea
Up to 30 banks compete for your business
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Invoice financing with best terms guarantee
You always get the same or better terms with Krea as with the invoice financing company.