Factoring value in the Netherlands 2022-2023, by sector

Dutch companies that were active in wholesale trade were the most likely to engage in factoring, or so-called invoice trading, to acquire funds for their business. They made up more than half of the factoring volume in the country, reaching around 90 billion euros 2023. Factoring is a transaction in which a business sells its accounts receivable (also known as invoices), to a third-party financial company (called a factor). The factor then collects payment on those invoices from the business’s customers. The main reason that companies choose to factor is that they want to receive cash quickly, so they can meet their immediate cash needs, rather than waiting the 30 to 60 days it often takes for customers to pay their bills.