What you need
- Income details
- Value of the collateral
- Overview of obligations
Pre-financing invoices · debtor risk · costs
Factoring for entrepreneurs
Factoring is the only form of finance on this site without security: your outstanding invoices are the collateral, and that shifts the question from insurance to the question of who bears the non-payment.
- several insurers compared objectively
- 9.5 customer rating for a new policy
- AFM licence 12016589
- Personal 072 - 509 24 56, weekdays 9–17
Deze pagina in het Nederlands: Factoring voor ondernemers.
Calculate your premium or request a quote
Without obligation; a reply within one working day.
The calculator and the quote form below are in Dutch. Prefer to do this in English? Email info@finassverzekert.nl or call 072 - 509 24 56 and we will take it from there.
Work out your own premium with the calculator.
Enter your details; you will receive a proposal within one working day.
- We compare the offerings of several insurers
- An adviser checks whether the cover suits your activities
- We arrange the switch, including cancellation
A premium indication, not personal advice. Prefer to talk it through? Call 072 - 509 24 56.
In brief
With factoring you transfer your receivables to a factoring company and receive an advance straight away, instead of waiting for the payment term to expire. The problem it solves is working capital: you have already paid wages, purchasing and fuel before your customer pays. No valuer, no mortgage right and no buildings insurance is involved.
The key question is whether the factoring is with or without recourse . Without recourse the factor takes on the debtor risk and the non-payment stays with them; with recourse you get the unpaid invoice back and bear the loss after all. If you only want to cover that risk and not the finance, then a credit insurance is a separate route.
Finass Verzekert does not arrange factoring contracts or credit. We advise on the insurance around them: credit insurance, professional and public liability and cyber. Feel free to get in contact if you would like to know what suits your situation.
What does factoring cover for business owners?
The structure of the cover in three parts, with an overview per situation below.
What it costs
What is often forgotten.
- Advice and arrangement fees
- Valuation and notary
- Property transfer tax
What goes with it
What the lender requires.
- Buildings insurance compulsory
- Sometimes term life cover
- Interested party on the policy
What is covered
| Subject | Explanation |
|---|---|
| Advice is independent | Yes |
| We compare several providers | Yes |
| We arrange credit ourselves | No |
| Referral to a specialist party | Yes |
| A first conversation without obligation | Yes |
| Costs clear in advance | Yes |
This overview is general in nature and is not personal advice. What is actually covered, including exclusions, limits and the excess, is set out in the policy conditions and the insurance card (verzekeringskaart) of the insurer; you receive both before you take out cover. Taking out cover without advice? Then read what execution only means for you.
Where things go wrong in practice
Four points that make the difference between a policy that pays out and one that does not.
With recourse means the risk stays with you
With recourse factoring the factor advances the invoice but reverses it as soon as your customer has failed to pay within an agreed period. You then receive a correction on the next advance, at exactly the moment you can least spare the money. So check in the contract how many days after the due date the right of recourse takes effect and whether the factor first tries to collect. Without recourse that risk lies with the factor and the fee is higher.
Credit insurance solves something different from factoring
Credit insurance does not get you your money sooner, but pays the receivable if your customer becomes insolvent or fails to pay over a long period. The insurer sets a credit limit for each customer and reviews it continuously. If you supply above that limit, the excess is not covered. Also excluded: invoices already overdue when the policy started, and supplies to a customer whose limit was withdrawn beforehand.
A disputed invoice is not paid out
Both the factor and the credit insurer stop as soon as your customer disputes the invoice. A dispute about the quality delivered, late completion or a mistake in your advice is not a credit risk but a disagreement about your own performance. Your professional indemnity or public and employers' liability insurance helps there, not your finance. Make sure the order confirmation, completion document and time records are in order; that is what wins a dispute.
Invoice fraud is part of the risk of invoicing
Anyone who outsources their invoicing flow will encounter spoofed emails giving a changed account number, either to your customer or to the factor. That loss is not under a liability policy: no property is damaged and nobody is injured. Only cyber or fraud cover comes into play here, and that comes with requirements on two-factor authentication and on a fixed procedure for changing bank details.
What does your premium depend on?
- With or without recourse — If the factor takes on the debtor risk the fee is higher; if the risk stays with you the rate is lower.
- Payment term and average duration — The longer your invoices stay outstanding, the longer the factor pre-finances and the more heavily that counts in the fee.
- Spread across your debtors — If most of your turnover comes from one or two customers, the portfolio is concentrated and therefore more sensitive.
- Sector and creditworthiness of your customers — Do you supply public bodies, construction firms using subcontractors or the hospitality trade? That determines the chance of non-payment.
- Export and country risk — Foreign customers bring a different legal system, a different collection process and sometimes transfer risk.
- Quality of your sales ledger — Correct invoices, demonstrable completions and a fixed reminder process reduce the number of disputes and with them the fee.
Insurers weigh these details differently. That is why comparing pays off.
How we arrange it
- You request a quoteWe take stock of your activities, turnover and wishes.
- We compareseveral insurers, on premium as well as conditions.
- You receive a proposalWith an explanation of the differences and the exclusions.
- We arrange the switchIncluding cancellation, so there is no gap in cover.
9.5New policy
9.8Claims handling
Customers rate our service on four aspects: personal service, service delivery, availability and the outcome. The reviews are collected and published by NH1816 and come from customers who have actually taken out a policy with Finass Advies B.V. or reported a claim.
Frequently asked questions
The questions we are asked most often about this.
Does the factor bear the risk if my customer does not pay?
That depends on the form. With non-recourse factoring the factor takes on the debtor risk and the non-payment stays with them. With recourse factoring you get the unpaid invoice back and the factor sets off the advance. Check the contract for the recourse period and for whether the factor first goes through a collection process itself.
What is the difference between factoring and credit insurance?
Factoring is finance: you get your money sooner. Credit insurance is cover: you only get your money if the customer fails to pay, and then only after the waiting period. If you are short of liquidity you choose factoring; if your main fear is the insolvency of a large customer, credit insurance is usually cheaper.
Do my customers have to know that I use factoring?
With disclosed factoring, yes: the transfer of the receivable is notified to your customer and they pay the factor directly. With undisclosed factoring no notification is given and you remain the point of contact, until the factor gives notice after all. If you sell to consumers or to one dominant client, that choice weighs heavily in the customer relationship.
Do I remain liable for the work delivered?
Yes. The factor buys the receivable, not your obligations. If what you delivered turns out to be defective, that is a failure to perform, and where third parties suffer damage it is a matter of Article 6:162 of the Dutch Civil Code. The factor will reverse the disputed invoice. Cover for that lies in your professional indemnity or public and employers' liability insurance, not in the factoring contract.
Ready to compare?
Request a quote without obligation. We will look at which insurer best matches your activities and your risk.
Prefer to call? 072 - 509 24 56, weekdays 09:00–17:00.
Claim on the road? Emergency line 06 - 55 20 40 72.
About our service
Finass Verzekert is a trading name of Finass Advies B.V. We advise on and arrange non-life insurance on the basis of an objective analysis of several insurers, and receive commission for this from the insurer, which is included in the premium. You pay no separate advice fee. Before you take out cover, we establish your wishes and needs.
You will find our licence, KvK and Kifid details and our complaints procedure at the foot of every page.
This page was written and checked by an adviser at Finass Verzekert. Last updated on .
The information on this page is general in nature and is not personal advice.