Read our frequently asked questions below:

No. Factoring means outsourcing your sales ledger and mortgaging your total debtor balances in order to free up liquidity. In other words, you borrow money against all your customers for a prearranged amount. A factoring company will typically demand collateral and a guarantee cover account, where you must deposit a large amount as collateral for the agreement with the factoring company. As a rule, your invoices will be mortgaged by up to 80 % but there are restrictions in relation to a factoring agreement and in reality, you will be disbursed less.

When you choose invoice discounting, you get the entire amount at once, save a small fee for us managing the transaction and taking on the credit risk. We do not stipulate a revenue demand, which the factoring companies do, which leaves you free to sell just one invoice if that is what you need.

As soon as you issue an invoice, the money owed to you by the customer reverts to you - at least in principle. They simply have not been paid into your account yet. You can choose to use invoice discounting as a supplement to your usual business procedure or as an alternative to increasing your line of credit. It is up to you. Naturally, with invoice discounting you are spared excess interest rates.

Yes. The only difference is that we ask your bank to denounce their deposit in the invoice in question when we transfer money to your income statement account at the bank, which holds the floating charge.

There is nothing unusual about a customer missing a due date, even for large, creditworthy companies. SWIFT Factoring is not a debt collection agency and it therefore rests on you to find out what the status of a delayed payment may be, just as it is your responsibility to issue a reminder. We will charge standard interest fees on overdue payment if your customer does not pay on time. If the customer has not paid within a period of 30 days from the due date, it is your responsibility as the seller to buy back your invoice from us. 

It is still possible to sell your invoice to us, and once you have done so we contact the customer and inform them that the invoice now belongs to us. From this point on, the procedure is the same as if you had sold us the invoice prior to sending it to your customer.

It is mandatory in Denmark (and Scandinavia) to inform the customer if you choose invoice discounting. Your customer will be informed that as a creditor, you have handed over the customer’s invoice to another legal entity. Once we have approved you as the seller, you issue a power of attorney allowing us to inform your customer that payment of said invoice is to be made to us.

It is entirely up to you, which invoices you want to sell. Once we receive your invoice and a confirmation from your customer that you have indeed delivered the service stated on the invoice, we make sure to transfer the agreed sum to you. The money will be in your account within 24 - 48 hours.

We endeavour to get the money to you within 24 hours. In some cases, it may take as much as 48 hours and we will keep you on top of any possible delays in payment.