Corporate Finance Services - Factoring

To optimise working capital NEROM structures and sells loan portfolios of companies with liquidity needs to specialised banks.

With the instrument of factoring receivables are sold to a factor bank which advances the receivables to maturity. If in addition to the financing function the factor takes over the credit risk, it is a so called non-recourse factoring. Non-recourse factoring has the advantage that the receivables sold leave the balance sheet of the seller, therefore shortens the balance sheet and correspondingly increases the equity ratio.

Factoring with pure financing function is an alternative to traditional working capital loans - to nearly the same cost of capital. The advantages of factoring are the additional services of the factor like adopting credit risk as well as the collection and recovery system.

As part of a limited auction we talk to different banks Factor and get a corresponding offers. We support you in structuring the portfolio of receivables, in the preparation of the necessary documentation, in the selection of suitable financing partners, at the evaluation of term sheets as well as in further negotiations until signing.