Smartest Financing from the factoring Companies

Factoring offers an attractive addition to traditional loan financing, as it does not require the usual collateral. In addition, factoring receivables financing is extremely flexible because it optimally adapts to sales and is therefore ideally suited as growth financing. When factoring the entrepreneur sells his invoices to the factor and thus benefits from immediate liquidity directly after accounting. Even long payment terms have no negative impact on their own liquidity.

Especially medium-sized companies have significant reserves when it comes to the timely dispatch of invoices or reminders. In coordination with the company, the factor takes over the receivables management and dunning process, which improves liquidity and saves the factoring customer time and money in order to concentrate on his core business. In addition, the receivables sold are fully protected against bad debts. The default risk is borne by the factor.

The full-service factoring

As a bank-independent financial services institution, the factoring company has many years of experience in all sectors of SMEs. This makes it possible for her to offer factoring also for young companies and start-ups. This distinguishes the factoring company from numerous competitors who often offer this type of financing only to companies that have already successfully established themselves on the market for 2 to 3 years. The purchase order financing makes the process easier.

Requirements

The prerequisite for concluding a contract with a factor is a credit check conducted by the latter, which, however, differs significantly from the credit check of a bank. In contrast to the bank, which primarily examines the creditworthiness of the borrower, the focus of the factor is essentially on the examination of the receivables to be purchased,i.e., above all, on the creditworthiness of the debtor (debtor) and the quality of the receivables. The purchase volume is managed by granting a financing limit (factoring framework) that can grow in line with sales. In addition, the entrepreneur must present a viable business concept as well as a sound business plan and the total financing of the company must stand.

Factoring brings fast liquidity and is suitable:

  • As a financing alternative in crisis situations
  • As additional mass financing
  • Especially in the bankruptcy procedure and self-administration
  • To ensure continued operation in bankruptcy
  • Because it also manages in bankruptcy without additional collateral
  • Because it secures the debtor claims that are emerging in insolvency against default

The services

  • Fast provision of liquidity within 24 hours
  • Tailored solutions for our customers
  • Transparent fee model
  • All services from one source:
  • Liquidity
  • Failure protection, debtor management, etc.

Complete settlement of credit insurance obligations through the factoring company leads to a significant reduction in the burden on factoring customers

Online portal and factoring briefing with company audit

Detailed information on the benefits of factoring, the process from the request to the start of the contract as well as the factoring costs can be found in our article.

Comments are closed.

  • Partner links