Factoring solutions
Accelerate receivables for factoring firms with instant settlement. Improve working capital and cross-border efficiency.
Ready to implement?
Factoring solutions
Problem
Factoring firms wait for cash they've already advanced.
Factoring firms face a structural timing problem. The factor pays the supplier on day one. The buyer pays the factor days later, sometimes weeks later, and the reconciliation process in between is mostly manual. Working capital sits idle while invoices wait.
Cross-border transactions make the gap worse. Standard SEPA Credit Transfers settle on the next business day at the latest. SEPA Direct Debit assumes a mandate that often does not exist in international setups. The factor advances cash to the supplier immediately, then waits without certainty when the buyer's payment will land.
Cross-border transactions remain the segment with the most acute payment friction. The infrastructure to match modern receivables finance is still being built.
Across Western Europe, 47% of B2B invoices are paid after their due date. 26% of companies report Days Sales Outstanding has increased over the past 12 months. Among the top reasons B2B customers pay late: operational constraints (34%), customer liquidity issues (34%), and invoice disputes (30%).
Atradius — Payment Practices Barometer: Western Europe, 2025
Cross-border trade faces sharper friction in Europe: 56% of exporters report problems with delayed payments versus 49% of non-exporters. The problem cascades. 31% of EU companies admit to delaying their own payments because they themselves are paid late, and 31% cite delayed payments as a direct threat to their survival.
European Commission — EU Payment Observatory Annual Report, 2025
Solution
SRTP closes the factor's funding gap.
SEPA Request-to-Pay combined with SEPA Instant Credit Transfer fits directly into the factoring workflow. After advancing cash to the supplier on day one, the factor issues a structured SRTP to the buyer for the assigned invoice. The buyer approves in their banking environment, and SEPA Instant settles the payment in seconds. The factor's working capital cycle closes the moment confirmation arrives.
SRTP provides the requesting layer. The factor generates a structured payment request directly from the receivables system, carrying the original invoice reference and the agreed payment terms. SEPA Instant handles the settlement layer. The buyer's approval triggers an immediate credit transfer that completes in under ten seconds, 24/7, including across borders within the SEPA zone.
For factoring firms, the consequence is structural. Cross-border timing stops being a working capital constraint. The factor's exposure window shrinks from days to seconds, and the cost of carrying advanced funds drops accordingly.
How it works
From invoice assignment to factor settlement, in seconds
- Invoice assignment - A supplier assigns a receivable to the factoring firm through the platform, typically after delivery of goods or services.
- SRTP triggered to the buyer - The factoring firm issues a structured SEPA Request to Pay to the buyer, referencing the assigned invoice and agreed payment terms.
- Buyer pays instantly via SEPA Instant - The buyer reviews and confirms payment through their bank or ERP-integrated interface. Funds are credited to the factoring firm within seconds, even across borders.
- Real-time reconciliation - The factoring system automatically reconciles the settled SRTP and releases the residual balance to the original supplier after fees or prepayment deductions, with status updates flowing through in real time.
Result
What factoring firms gain
- Immediate capital turnover - Factoring payments settle in seconds via SEPA Instant. Working capital becomes available the moment the buyer confirms.
- Reduced Days Sales Outstanding - Receivables convert to cash sooner. Structured ISO 20022 data reduces manual chasing on both factor and supplier side.
- Cross-border liquidity at domestic speed - SEPA Instant works the same way across all SEPA countries. Cross-border factoring transactions settle as fast as domestic ones. The timing penalty that has historically constrained international receivables finance disappears.
- Audit-ready transaction trail - Every transaction carries structured payment data with full request and settlement history. Compliance teams gain complete visibility into each step.
- Lower operational cost - Manual reconciliation drops significantly when every payment arrives with structured ISO 20022 references. Factoring operations teams free up time previously spent on payment matching.
Use Case Flow
Ready to transform payments?
Book a demo to see how ToriiPay can reduce costs and speed up payments for your business. Or schedule a consultation to explore partnership opportunities.