Factoring
Working capital optimisation along the whole of your supply chain
Factoring is a good complement to classic bank financing arrangements. Using factoring works well with bank loans and gives companies more financial freedom. Companies sell their accounts receivable to get money quickly and easily. Companies should use selling their invoices to get money when business is good. This helps them prepare for hard times. Receivables financing is a modern way to fund businesses. It allows credit limits to match the company's specific situation.
A part of Erste Group, Intermarket Bank is the leading specialist in factoring and supply chain finance (SCF) in Austria.
Advantages of factoring
- An alternative method of ensuring liquidity
Factoring works on the basis of the volume of accounts receivable that a company has. As a result it is independent of the credit facilities agreed for and by the company; and it does not increase the factoring client's liabilities towards the bank. - A broader funding base providing greater financial freedom
Factoring is the purchasing of receivables made under civil law; the risk is spread across a large number of debtors. An advance can be made immediately on the amount owing by Intermarket Bank; and the company as a result benefits from greater flexibility in its day-to-day liquidity and working capital management. - Greater security and risk protection against bad debt
If Intermarket Bank takes on the risk of default, the company is protected against payment defaults from its debtors. If so requested by the customer, Intermarket Bank can take in hand receivables insurance, or can refer the customer on to a partner such as Acredia Kreditversicherung. - Balance sheet contraction and an improvement in credit ratings
An optimised balance sheet structure due to a higher equity ratio, and improved financial strength. - More efficient debtor management
Factoring leads to better discipline into debtor management, better data quality and a reduction in overdue payments. This is accompanied by risk monitoring of debtors' creditworthiness.
Products
*) Recourse: Die Intermarket Bank kann vorfinanzierte Summen zurückfordern, wenn die Kunden des Unternehmens ihren Forderungen nicht nachkommen.
**) Non-recourse: Das Ausfallsrisiko wird komplett von der Intermarket Bank übernommen.
Intermarket Bank AG
Intermarket Bank AG has been helping businesses since 1971. It focuses on working capital finances and supply chain finance. It is part of Erste Group and offers solutions for supply chain finance.
Supply chain finance helps businesses improve financial structures and reduce costs. Intermarket Bank provides custom solutions to secure funds and reduce risks in supply chains. Intermarket Bank works closely with Erste Group. It offers financial products and digital platforms. These include financing from sellers, financing for storage, and selling invoices to get money quickly.
Since mid-2011, Intermarket Bank has been part of der oesterreichischen Sparkassen AG. In January 2017, its shares moved to Erste Group Bank AG. Intermarket Bank is a specialist in financing money that businesses are waiting to receive in the domestic market. In times of Basel III, in particular, disposable equity plays an important role in your company's stability and it's ability to grow.