In Sweden, factoring companies make credit available through accounts-receivable financing as soon as they receive the customer invoices. Generally, the seller of the good continues to bear the credit risk, that is, the factoring is “with recourse”. But the market for non-recourse factoring, which costs more, continues to expand and increased competition is bringing costs down. Factoring has tended to be disclosed but continues to move towards undisclosed factoring. Factoring services have long been available to larger companies, but the number of local factoring companies offering services to smaller companies on competitive terms continues to grow. In addition, changes in bankruptcy laws are fuelling banks’ interest in providing factoring services. The costs of factoring include both interest and commission.
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