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.
How does factoring for industry solve these problems?
Invoice financing for industry
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.
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