Choose factoring suited to your needs
Recourse factoring is a service that allows you to quickly unlock cash tied up in unpaid invoices.
Your company sends invoices issued to clients for delivered goods or services to KUKE Finance. In return, KUKE Finance immediately transfers cash to your bank account and then waits for the invoices to be paid by your customers.
You bear the risk of non-payment by customers, so recourse factoring is best suited for companies that sell their goods or services on deferred payment terms to a stable and verified group of clients and want to shorten the waiting time for payment from them.
Tired of waiting for payment for delivered goods or services? When your clients delay payment, you may have trouble maintaining financial liquidity. Recourse factoring is a quick way to convert invoices into cash. By using factoring from KUKE Finance, you receive cash immediately after issuing an invoice. These funds can be used for any purpose. Factoring also includes a package of additional services, such as managing customer accounts, monitoring, and enforcing payments.
By choosing recourse factoring, your company primarily gains quick access to cash. This means you don’t have to wait for payment terms agreed with clients, allowing you to manage your company’s finances freely. The ability to use funds immediately increases your operational flexibility, enabling you to meet current obligations, invest, or expand your business.
Another significant benefit is the improvement of cash flow. Thanks to regular cash inflows from recourse factoring, your company can avoid liquidity issues that may arise from payment delays by contractors. This is particularly important for businesses operating in industries where payment terms are long, and the regularity of inflows is crucial for stable operations.
Recourse factoring involves the purchase of receivables by KUKE Finance (the factor) from your company (the client) without assuming the risk of your customers’ insolvency. In this case, you are responsible for the solvency of your contractors.
In the event of non-payment by the customer within the additional period specified in the factoring agreement, calculated from the invoice payment date, you are obliged to return the advance paid by KUKE Finance for the purchase of receivables (usually 90% of the invoice value). Therefore, recourse factoring is the best solution for companies working with a group of regular and verified clients.
It is worth noting that in recourse factoring, despite the lack of assumption of the insolvency risk of customers by the factor, the factor assists in the collection of unpaid receivables. This means support for your company through the actions of a professional debt collection team.
Recourse factoring involves fewer formalities than non- recourse factoring, related to the granting of credit limits to contractors. This type of factoring is also cheaper than the non-recourse factoring service.
Factoring provides instant access to cash tied up in unpaid invoices. You will no longer have to wait for customer payments in order to settle your own liabilities on an ongoing basis.
Your company will become more competitive, which may result in an increase in the number and value of new orders.
As your business grows and sales increase, so does the amount of cash available from the factoring company that purchases your invoices.
The factoring company will handle managing and collecting payments from customers. The time and effort spent on these time consuming activities can be redirected to your company’s core business.
You get quick and easy access to cash 24/7 without the need to use traditional and more complicated forms of financing such as bank loans.
