Factoring for construction companies

Companies operating in the industrial sector often issue invoices with deferred payment terms of up to 30, 60 and in some cases even 90 days. In many industries, this practice is commonplace and surprises no one. However, this does not change the fact that there are times when an industrial company delivers several finished orders to customers, but still has to wait for payment for them. How to deal with such situations? The solution is factoring for industry.
Read our guide to find out:

Problems for entrepreneurs


One of the main inconveniences faced by entrepreneurs is that even if they have not yet received payment for a service rendered or products delivered, they still have to pay income tax and VAT.

It’s easy to imagine a situation in which a small businessman will have to pay several thousand zlotys in tax, while he hasn’t received a single zloty from contractors who still have time to pay their obligations under the invoices issued.

EXAMPLE

How does factoring for industry solve these problems?


Invoice financing for industry

Important!

Online invoice financing involves an entrepreneur waiting to be paid by a counterparty to sell an invoice to a factoring company (i.e. a factor) – to do so, he submits an application online. The system processes the application (often even in a few hours – much faster than in the case of loans) and sends the terms to the customer. The customer accepts the terms of redemption via SMS, and the factor immediately transfers the funds to the entrepreneur’s account, charging a small commission.

EXAMPLE

At PragmaGO, after submitting the first application, we automatically set up a client account and grant the entrepreneur a limit of funds (up to PLN 100,000) – from now on, the client can sell invoices for a total amount not exceeding the limit.

Factoring for the industrial sector


Important!

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