Factoring is a multifunctional complex of financial services and digital technologies for the Suppliers and Buyers business that work on deferred payment terms, providing for the assignment of a monetary claim.

Services include:
- financing
- hedging the risk of late payments or non-payment by Buyers
- administrative management of accounts receivable
- financial management
- conducting a comprehensive business analysis of counterparties transferred to factoring services

For the Supplier:
- gain additional financial leverage by increasing capital turnover
- reduce the risk of a cash gap
- tinsure the risk of non-payment
- get an unsecured financial instrument
- predict financial flows
- improve the balance structure
- expand the customer base

For the Buyer:
- pay off your Supplier without using working capital
- receive or increase a deferred payment from your Supplier
- get guarantees of the Supplier's fulfillment of obligations under contracts
- get financial support without changing the balance sheet structure
- expand the customer base

Recourse factoring
As part of this product, the supply is financed with services for the administration of payments, as well as the management of receivables. In this case, the risk of non-payment for the delivery of goods or services rendered to the factoring company is borne by the Supplier
Non-recourse factoring
The factoring company insures the Supplier against the risk of non-payment by the Buyer
Purchase financing or agency factoring
This product is more focused on the Buyer, as it finances Suppliers in which the Buyer is interested. This type of factoring allows you to receive a financial instrument without increasing the credit burden.
Pre-delivery factoring
The Supplier receives financing against the future assignment of monetary claims against its Buyers
Financing of government contracts
A type of factoring service focused on the state order market (Russian federal laws 223-FZ, 44-FZ)
Digital factoring
A new direction in the factoring market, focused on the digitalization of the factoring service business processes and reduction of the time to receive financing
Accounts receivable administration
A product without providing financing. It allows Clients to hand over Buyers' receivables to management and ensure the proper quality of payment discipline
Private factoring
A type of recourse factoring that does not involve notification of the Buyers of the fact of the assignment of monetary claims by the Client to the Factoring Company
International factoring
Financing of export or import contracts.

Urgency:
factoring is an indefinite financing, as the money that the factoring company pays remains in the company's turnover; a loan is a fixed-term instrument.
Repayment process:
The loan is repaid with the company's own funds, taken from money circulation, while factoring doesn't have such problem, since the debt on monetary claims is repaid from funds received from Buyers.
No collateral:
When using a loan there is always a deposit with a limited capacity plus the deposit is always discounted. Factoring does not set collateral for financing.
Level of risk:
Factoring without the right of recourse completely frees the Client from the risk of non-payments of the Buyer. The risk passes to the factoring company.
Targeted use:
Received financing can be spent without control of the targeted use of funds by the factoring company.
Flexibility:
The funding limit for factoring can be increased as sales volumes increase.
Reflected in the balance sheet structure:
Factoring is not reflected in the balance sheet structure as a credit obligation.
The method of the commission payment :
For a loan the commission is paid using the working capital of the company. For factoring the commission can be paid from the 2nd payment upon receipt of funds from the Buyer, or it can be offset from the amount of paid financing
There are no defined limits:
In most cases, the factoring limit is set on the Debtor and utilzed by the Client as the need arises.
Factoring is loyal to the representatives of SMEs:
Almost any company can use this financial instrument, since the risk is mainly assumed by the Buyer, who, as a rule, has a higher credit rating than the Supplier.

The Buyer does not bear additional financial responsibility for factoring, that is, when the monetary claim is assigned, the payment amount does not change and there are no significant changes in the relationship between the Buyer and the Suppliers. All contractual relations between the Supplier and the Buyer and the practice of their cooperation remain unchanged. The buyer pays under supply contracts at the same time as before, but only to the account details of the factoring company, as for the notice.