Factoring is for companies that get paid late but have their expenses early. If your business has customers who pay their invoices after 30, or up to 180 days - then factoring can be a good alternative to get quick access to capital.

Factoring refers to a loan where the value ​​of the invoices constitutes the collateral. With a factoring agreement, you receive cash that can be used immediately in the business. At Krea, you can learn about the benefits of factoring, and get help finding the best solution for your business.

In Sweden, factoring is sometimes called "invoice discounting" or "fakturaköp". However, there are some small differences between the two. As mentioned, factoring is a loan where the value ​​of the invoices are the collateral. Invoice discounting, on the other hand, is the process of selling invoices to an invoice discounting company.

Krea exposes more than 30 banks and lenders to competition for business financing. The following actors have the opportunity to give you offers on financing on our platform.

Factoring
Ikano Bank, A.B.S Global Factoring, Svea Bank, Invoier, Alfa Finans, Billecta, Capcito, CapIQ, Euro Finans, Finansia och FINQR.

Business loans
Marginalen Bank, Froda, Svea Bank, Aros Kapital, Capcito, CapIQ, Capitalbox, Corpia, DBT, Euro Finans, Fedelta, FINQR, FundingPartner, Kameo, Leasio Finans AB, Mynt, OPR, Qred, SBL Finans, Svensk Företagsfinansiering och Treyd.

Real estate loans
SBP Nordic, Kameo, Svea Bank, Froda, Aros Kapital, Corpia, DBT, Euro Finans, Froda, FundingPartner och IMH Finans.

Business leasing
We cooperate with Nordic Finance and Marginalen Bank, among others.

For larger financing solutions, Krea collaborates with all relevant banks and lenders, including most larger banks, for example Nordea and SEB.

To apply for factoring with Krea you are required to have signing rights for the company. That means that you need to have a leading role in the company, such as a CEO or board member. The company also has to be registered and active in Sweden.

Should you not have signing rights but have an economic or other role in the company, you can always contact our customer service, kundservice@krea.se for assistance with your application.

Private individuals cannot apply and neither can shell corporations, shelf corporations or branch companies.

Factoring agreements can vary greatly - with a commission ranging between 0.5% to 3% per month. By collecting several offers, Krea helps you make sure that you find the best price for your business.

At Krea, we have made it easy to add important documents in the application, such as account ledgers and accounting data. After submitting an application, it is easy to compare different offers and their total costs for recurring invoices.

In order to sign a new factoring agreement with Krea, you are required to be a beneficial owner of the applying company. That means that you need to have a leading role and be an authorized signatory of the company, such as a CEO or board member. The applying company must also be registered and active in Sweden.

In addition to this, we have some requirements on the invoices you wish to sell:

• Recurring sales - By selling invoices on an ongoing basis you will receive offers with better terms. Therefore, at Krea you must sell more than one invoice in order to sign a factoring deal with us.
• A maximum of 90 expiry days - For financing over 90 days, we recommend business loans instead of factoring as business loans usually have superior terms.
• The invoice recipient is creditworthy - By applying to several lenders with one application, you can get an idea of ​​how much of your invoices that can be used as collateral in a factoring agreement.
• The invoice must not be paid, overdue or older than 10 days old.

The cost of factoring can vary greatly with a commission between 0.5% to 3% per month. There are also additional costs (eg invoice handling fees). Krea get the factoring companies to compete for your invoices before you sign a new agreement.

You improve the terms you are offered by sharing more information about your company's sales, e.g. account ledgers or accounting data.

When you choose between different factoring offers, it is important to consider:

Qualitative criteria:

• Reminder and debt collection management - How does the factoring company handle the contact with your customers? This is especially important for those customers who do not pay on time.
• Integration with accounting software - How easy will it be for you to register the factoring in your account system? Most factoring companies we work with offer integrations with e.g. Fortnox.
• Credit Reporting - Do you have the possibility to make a credit report on your end customers?

Terms:

• Commission - How much of the total value of the invoice will you get paid? This can vary from anywhere between 97% to 99.5% of the invoice value.
• Invoice handling fee - If you have several smaller invoices, the total cost can be quite large. With us, you can compare the total cost of all offers you receive before making a choice.
• With or without recourse - If you sell your invoices without recourse, the factoring company takes on more risk, which usually leads to a slightly higher cost as well.

You can choose to sign a factoring agreement where the invoices are sold with or without recourse.

Factoring without recourse means that the buyer takes over the entire credit risk after the invoice purchase. As a seller, you can expect to always get paid regardless of whether the invoice recipient is late or does not pay the invoices.

Factoring with recourse means that unpaid invoices are returned to you under certain circumstances. There is usually a time limit, commonly 30 days, when the bank or lender tries to collect the debt if it has not been paid. The bank or lender also verifies the process with you as a factoring customer and ensures that the relationship with the end customer continues to be good.