FAQ

In contrast to traditional invoice factoring, where the supplier sells its invoices to a third party at a discount, thereby receiving early payment, in reverse factoring, the buyer initiates the process. This type of factoring is commonly used by companies when they want to offer early payment to their suppliers while retaining a higher level of liquidity. Reverse factoring can be a way to strengthen a company's competitiveness while also solidifying supplier relationships.

As soon as your invoices have been uploaded, approved, published on the marketplace and sold, the sales proceeds will be credited to your dashboard. From there, you can initiate the transfer to your bank account by clicking on “Withdraw money”. The amount will then be transferred to your bank account within 1-3 days.

You can sell as many invoices as you like on the Aequitex platform. However, the total invoice amount that you can pre-finance via Aequitex depends on your customer level. At the beginning (Level 1) you can pre-finance invoices with a maximum total value of CHF 10k, in Level 2 up to CHF 25k, Level 3 up to CHF 50k, Level 4 up to CHF 100k and Level 5 up to CHF 250k and Level 6 up to CHF 500k. (If you need a higher level right from the start, please contact us at info@aequitex.com)

The buyer bears the default risk. Aequitex supports the buyer in collecting the invoice amount due. Should debt collection become necessary, Aequitex will coordinate the further procedure with the buyer, as the buyer must bear the costs in the event of debt collection. Please also read our General Terms and Conditions (in particular: § 6).

As soon as your invoice has been uploaded, assessed and validated, you will receive an offer (invoice amount minus risk deduction) in the invoice section of your dashboard. If your invoice is sold via the marketplace for this amount, this amount will be credited to your dashboard. From there, you can initiate the transfer to your bank account by clicking on “Withdraw money”. The amount will then be transferred to your bank account within 1-3 days.

In "True (Non-Recourse) Factoring" without recourse, where the risk passes entirely to the buyer, the invoice must be coordinated with the debtor, and the debtor's credibility determines the discount on the invoice amount. In "False (Recourse) Factoring with Recourse," factoring can also be done "silently," i.e., without notifying the debtor. However, this option can only be offered if the seller has a good credit rating.

All fees are determined individually based on the creditworthiness of the seller and the debtor, payment terms, the age of the invoice, and other factors. Our in-house, AI-driven algorithm constantly evaluates these factors to provide a competitive risk-reward ratio for investors and quickly supply SMEs with the required liquidity. The annual fee for sellers is 240 CHF. The discount on the respective invoice amount is calculated individually and is usually between 1% and 10%. No additional fees apply.

In factoring, a company sells its receivables (invoices) to a third party (the factor) at a discount. This provides immediate cash flow to the company instead of waiting for customer invoice payments. Visit our article, "Factoring 101 - A comprehensive guide for SMEs" for more information. 

Factoring may be suitable for companies in need of immediate cash flow, dealing with slow-paying customers, or lacking traditional financing options. It is particularly helpful for small to medium-sized enterprises (SMEs) or startups.

Aequitex services are available to B2B companies with a stable base of creditworthy customers. Businesses from various industries, such as manufacturing, wholesale, or other services, can benefit from our factoring services. Currently, only companies based in Switzerland can sell their invoices through Aequitex.

By selling your invoices through Aequitex, you can typically convert your receivables (invoices) into liquid funds within 24 to 48 hours, improve your cash flow, and focus on growing your business instead of managing receivables or dealing with lengthy bank loan application processes.

The benefits include improved cash flow, no need for collateral as required in traditional loans, immediate funds for business growth, and the ability to outsource the risk of non-payment. Visit our article, "Factoring as a Growth Engine for Small and Medium-Sized Enterprises" for more information. 

Typically, funds are disbursed within 24 to 48 hours after invoice verification, approval, and purchase by an investor.

Factoring is worthwhile if your company experiences long payment cycles, needs to stabilize cash flow, or lacks resources to efficiently manage receivables.

Requirements include having a company with creditworthy commercial customers and outstanding invoices for delivered goods/services. Currently, our services are mainly intended for companies based in Switzerland. However, we plan to expand. Sign up for our newsletter to be informed when we offer services in your region.

Aequitex offers fast access to liquidity—usually within 24 to 48 hours—up to 99% of the invoice amount, a simple process conducted 100% online, and a transparent cost structure with competitive interest rates. We also provide additional services such as credit management and invoice collection, going beyond mere financing. Visit our article, Aequitex Factoring vs. traditional Finance - Pros and Cons" for more information. 

The process involves submitting your invoice to Aequitex, which then reviews and approves it. After approval, a percentage of the invoice value is paid to you in advance, minus fees and risk interest, if an investor has purchased your invoice on the Aequitex marketplace.

Depending on the agreement, Aequitex may take over the collection process. In non-recourse factoring, the investor assumes the credit risk, but in recourse factoring, you are responsible for unpaid invoices.

You can inform us of your desire to leave our platform community at any time by emailing support@aequitex.com. Your membership will be terminated after the completion of the current annual cycle, before the next annual fee would be due for you.

Currently, our services are primarily intended for companies based in Switzerland. However, we plan to expand. Sign up for our newsletter to be informed when we offer services in your region.