Factoring funds in use in the Netherlands 2018-2022, by size

If factoring, or the selling of invoices, happened in the Netherlands in 2021, most funds in use were found in the revenue bracket higher than 100 million euros. 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. For this reason, and as can be seen in this statistic, factoring in the Netherlands is mostly associated with SMEs.