Growing Business for the best factoring Invoices Right Here

Factoring is a process that allows a company to find short-term financing. It consists for the company to obtain anticipated cash expected from a debt held on another company, via a specialized credit institution (factoring company or, in English, “factor”). For example, if a company A has sold a product to a company B, which has two months to settle its debt, the company can cash the sum more quickly from the factoring company, obviously with a commission paid to that company.

Debt recovery

The receivable is thus sold to the factoring company which will be responsible for recovering it from Company B. Long considered a practice of last resort for companies in difficulty, factoring tends to become an outsourcing practice more widespread. For the factoring invoices it is important.

Factoring or factoring is a financial mechanism by which the company transfers its unpaid invoices to the factor that makes available – together or separately – the following services:

  • invoice management (‘pay as paid’)
  • the financing of invoices
  • recovery of unpaid debts (amicable, mediated or judicial)

Non-payment risk coverage (credit insurance)

It allows the company to finance the payment deadlines granted to its customers.

The main features

Factoring can be:

Managed (in delegated management) or unmanaged: the factor manages the payment reminders (phone, mail…)

Notified or not notified (confidential): the debtors of the company are clearly informed that its factor is subrogated in its rights and that the payments must be addressed to him

With or without recourse: the company does or does not exercise its right of recourse, either by itself or through its credit insurer. The abandonment of recourse by the company allows the factor to exercise this right itself, either directly or through the credit insurer.

The different factoring solutions

  • Full Factoring (Global factoring)
  • Full Factoring (Global factoring) includes both invoice management, financing, collection and non-payment risk coverage (non-recourse)
  • Bulk Factoring (Invoice Discounting System) or Factoring on Balance

Bulk Factoring or Balance Factoring is used to finance the balance of the customer balance, ie the sum of the invoices over a given period without changing the way of invoicing or the relationship with the customer. It does not include invoice management

Advantages

  • Quick financing (24 / 48h)
  • Financing adapted to seasonal cycles
  • An improvement in cash and working capital (DSO or DPM)
  • Services accessible to all business profiles: TPE, SME and GE
  • Services available nationally and internationally
  • The possibility of a partial or total outsourcing of “Credit Management”
  • A management quality of claims recognized by companies specialized in
  • credit insurance, giving access to preferential rates, or even exclusive products
  • Outsourcing partner providers of out-of-bank banking, leaving all banks free to negotiate

The benefits of a specialized factoring broker

Our collaboration with independent banking network factors will give you greater flexibility to negotiate other financial commitments with your traditional financial partner.

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