You've sent the invoice, the work is delivered — and the money won't arrive for another 60 days? That's exactly where factoring comes in: you sell your outstanding receivables to a factor and get the money within a few days instead of waiting weeks. It sounds tempting, but it comes at a price.

The short, honest answer up front: for most self-employed people and sole proprietorships in Switzerland, factoring isn't worth it. The cost of 1–3% of revenue eats up the profit on thin margins, and a clean invoicing and reminder process closes most cash flow gaps for free. Factoring makes sense mainly in B2B with 60–90-day payment terms, or as growth financing without an additional credit line.

This article takes a close look at factoring in Switzerland: how recourse and non-recourse invoice selling works, what providers like Svea Finans or GF Instakass charge, how to book and handle the VAT side — and where the line lies beyond which a good reminder process is the better choice.