EU volume €2.3 trillion/year, 90% of the amount advanced upfront, 0.5-2.5% commission + EURIBOR+1.5-3.5% financing margin. The most powerful cash lever for European SMEs.
Audit my cashFour situations where factoring beats a bank overdraft.
Your customers pay at 60-90 days and you need cash within 48 hours. Factoring advances 90% of the amount immediately, you receive the balance once the customer pays.
Your order book is doubling but your working-capital need is exploding. Factoring finances growth without diluting equity or burdening bank debt.
The factor handles reminders, demand letters and litigation. You save one accounting FTE and focus on sales.
Non-recourse factoring transfers customer insolvency risk to the factor. If the customer goes bust, you keep the cash. Essential in B2B export.
Choose by your need for financing, collection or coverage.
The factor advances 80-90% of the invoice but keeps recourse in case of non-payment. Cheaper (commission 0.4-1.5%) but the risk stays with you.
The factor assumes insolvency risk (via credit insurance Coface, Allianz Trade, Atradius). More expensive (commission 0.8-2.5%) but zero risk for you.
The buyer (large corporate) sets up the programme: their suppliers are paid in 7 days by the factor, the buyer settles in 90 days. Win-win for the supply chain.
Penetration / GDP, customary commission, financing margin and major players — data verified April 2026.
| Country | Penetration | Commission | Fin. margin | Major players |
|---|---|---|---|---|
| ATAustria | 4.6 % | 0.5–2.5 % | EURIBOR + 1.5–3.5 % | Raiffeisen Factor Bank, Intermarket Bank, FactorPlus |
| BEBelgium | 19.2 % | 0.4–2.0 % | EURIBOR + 1.2–3.0 % | BNP Paribas Fortis Factor, ING Commercial Finance, KBC Commercial Finance |
| BGBulgaria | 4.1 % | 1.0–3.0 % | EURIBOR + 2.5–5.0 % | UniCredit Bulbank Factoring, DSK Bank Factoring, FIBank Factoring |
| HRCroatia | 5.3 % | 0.7–2.5 % | EURIBOR + 2.0–4.0 % | PBZ Faktoring, Erste Faktoring, Privredna banka Factoring |
| CYCyprus | 8.5 % | 0.8–2.5 % | EURIBOR + 2.0–4.0 % | Bank of Cyprus Factoring, Hellenic Bank Factoring |
| CZCzech Republic | 5.2 % | 0.5–2.0 % | PRIBOR + 1.5–3.5 % | ČSOB Factoring, Komerční banka Factoring, Erste Factoring |
| DKDenmark | 5.4 % | 0.5–2.0 % | CIBOR + 1.5–3.0 % | Danske Bank Finance, Nordea Finance, Midt Factoring |
| EEEstonia | 7.8 % | 0.6–2.0 % | EURIBOR + 1.5–3.5 % | SEB Factoring, Swedbank Factoring, LHV Factoring |
| FIFinland | 13.2 % | 0.5–2.0 % | EURIBOR + 1.0–3.0 % | Nordea Finance, OP Financial Group, Handelsbanken Finans |
| FRFrance | 14.8 % | 0.5–2.5 % | EURIBOR + 1.0–3.5 % | BNP Paribas Factor, Crédit Agricole Leasing & Factoring, Eurofactor (Crédit Agricole), Société Générale Factoring |
| DEGermany | 8.4 % | 0.4–2.0 % | EURIBOR + 1.0–3.0 % | Targobank Factoring, Coface Finanz, Deutsche Factoring Bank, BNP Paribas Factor Germany |
| ELGreece | 5.7 % | 0.7–2.5 % | EURIBOR + 2.0–4.0 % | Eurobank Factors, NBG Factors, Piraeus Factoring |
| HUHungary | 3.1 % | 0.6–2.5 % | BUBOR + 1.5–3.5 % | OTP Faktoring, MagNet Bank Factoring, K&H Factoring |
| IEIreland | 8.6 % | 0.5–2.5 % | EURIBOR + 1.5–3.5 % | AIB Commercial Finance, Bibby Financial Services Ireland, Close Brothers Commercial Finance |
| ITItaly | 14.2 % | 0.5–2.5 % | EURIBOR + 1.0–3.5 % | Intesa Sanpaolo Mediocredito Italiano, UniCredit Factoring, Banca Sistema, BFF Banking Group |
| LVLatvia | 4.7 % | 0.7–2.5 % | EURIBOR + 1.5–3.5 % | SEB Factoring, Swedbank Factoring, Citadele Faktorings |
| LTLithuania | 8.1 % | 0.6–2.5 % | EURIBOR + 1.5–3.5 % | SEB Factoring, Swedbank Factoring, Šiaulių bankas Factoring |
| LULuxembourg | 3.2 % | 0.5–2.0 % | EURIBOR + 1.0–3.0 % | BGL BNP Paribas Factor, ING Luxembourg Factoring |
| MTMalta | 1.8 % | 1.0–3.0 % | EURIBOR + 2.0–4.0 % | Bank of Valletta Factoring, HSBC Malta Factoring |
| NLNetherlands | 13.1 % | 0.4–2.0 % | EURIBOR + 1.0–3.0 % | ABN AMRO Commercial Finance, ING Commercial Finance, Rabo Commercial Finance, Bibby Financial Services |
| PLPoland | 8.5 % | 0.5–2.5 % | WIBOR + 1.5–3.5 % | ING Commercial Finance, BNP Paribas Faktoring, Pekao Faktoring, Coface Polska |
| PTPortugal | 16.2 % | 0.6–2.5 % | EURIBOR + 1.5–3.5 % | Eurofactor Portugal (Crédit Agricole), Millennium BCP Factoring, Santander Factoring |
| RORomania | 4.8 % | 0.7–2.5 % | ROBOR + 2.0–4.0 % | BCR Factoring, Banca Transilvania Factoring, ING Factoring Romania, Coface Romania |
| SKSlovakia | 4.7 % | 0.6–2.5 % | EURIBOR + 1.5–3.5 % | VÚB Factoring (Intesa Sanpaolo), Tatra banka Factoring, Slovenská sporiteľňa Factoring |
| SISlovenia | 3.4 % | 0.7–2.5 % | EURIBOR + 1.5–3.5 % | NLB Factoring, SID Banka Factoring, Prvi Faktor |
| ESSpain | 17.5 % | 0.5–2.5 % | EURIBOR + 1.0–3.5 % | Banco Santander Factoring, BBVA Factoring, CaixaBank Factoring, Eurofactor España |
| SESweden | 6.8 % | 0.5–2.0 % | STIBOR + 1.0–3.0 % | Svea Ekonomi, Handelsbanken Finans, SEB Factoring, Nordea Finance |
The total cost of a factoring transaction breaks down into 3 lines. For a €10,000 invoice at 60 days, expect roughly €80-200 of total cost depending on the risk profile.
Factoring commission: 0.5 to 2.5% of the invoice's gross amount (covers handling, collection and possibly credit insurance)
Financing margin: 3M EURIBOR + 1.5 to 3.5 points (covers the cost of the advance over the credit period)
Ancillary fees: account opening (€0-300), per-assignment file fee (€0-15), credit insurance extra if full factoring
Free 5-minute diagnostic: DSO audit, cost simulation, comparison with a bank overdraft.
Audit my cashFor traditional contracts, the threshold is typically €300,000 to €500,000 of annual B2B revenue. Below that, fixed fees weigh too much. Since 2020, several digital offerings (Defacto, Hokodo, Karmen, Aria…) accept freelancers from €50,000 of revenue, with a single 1-3% commission with no commitment.
Yes, but differently by type. With recourse: the receivable stays on assets and the advance is recorded as 'short-term bank facility'. Without recourse: the receivable is removed (derecognised under IFRS 9) and improves financial-structure ratios. Strong argument for mid-caps before LBO or IPO.
Depends on the contract. In notified factoring (most common), the customer is informed via a mention on the invoice ('This receivable has been assigned to [factor]') and pays the factor directly. In confidential factoring (reserved for large companies with excellent ratings), the customer is not informed, you keep collecting and remit to the factor.
Early-payment discount (1-2% for 10-day payment) is simpler, no commitment, no fixed cost — but depends on the customer (who can refuse). Factoring is systematic but more expensive on average (3-5% all-in vs 1-2% discount) and commits you over time. Rule of thumb: discount if you have 1-3 reliable major customers, factoring if you have a diversified portfolio of 20+ B2B customers.
Three key criteria: (1) geography — verify the factor covers your customer countries, ideally pan-European (BNP Paribas Factor, Coface, Eurofactor); (2) sector — some factors decline construction, temp agencies, healthcare; ask for accepted sectors; (3) pricing — compare the all-in cost (commission + margin + fees) over 12 months, not just the displayed commission. Always request 3 competing offers.