True Opportunities for the Proper factoring Here Now

A company can only successfully position itself in the market, even if it has the financial potential – if services rendered quickly translate into liquidity. And factoring brings just this effect.

Why is factoring worthwhile?

Factoring means for your company:

Immediate liquidity:

Within one to two days, you can dispose of a large part of the invoiced amount (up to approx. 90 percent).

Shopping benefits:

Secure bonuses and discounts with your suppliers and strengthen your bargaining position as a “good payer”.

Administrative discharge:

The factoring company provides you with day-to-day accounts receivable accounting and an efficiently managed dunning process. This saves you time, administrative costs and does not burden your customer relationship with dunning procedures and debt collection.

Competitive Advantage:

Give your customers longer payment terms and keep your good customer relationships, because you “objectify” the dunning process by outsourcing the debtor management.

Default

Protection: Securing against bad debts by insolvent customers. The risk is borne by the factoring company.

Better rating:

The reduction in the balance sheet will increase the equity ratio and improve your rating according to Basel III –

  • Find out more about creditworthiness and rating
  • Factoring pays off easily

The most important thing in advance:

With the liquidity gained through factoring, you pay your suppliers using cash discount. The factoring fees are in the cash discount area and thus usually do not incur any additional costs. The amount of the factoring fee is determined individually and depends on the annual turnover, the number of invoices, the debtor structure, the sector and the payment term of the customers. The factoring invoices are there now also.

Further savings:

Due to defaulting payer and ineffective debtor management, your company incurs costs that can be eliminated by factoring.

  • Credit research / information on customers
  • Reminder and attorney
  • Expenses due to bad debts

Even if the cost structure remains unchanged, the benefits of factoring are obvious:

  • flexible “growing” financing
  • more independence and security
  • basically no additional collateral required

Your advantage: administrative relief through factoring

The factor records all purchased outgoing invoices of its factoring customer and provide it with a day-to-day accounts receivable accounting. This relieves the bookkeeping accordingly. In addition, the factor operates a dunning system coordinated with the entrepreneur, which determines how and when it will be reminded (including, if necessary, legal recovery). The procedure can also be individually coordinated if certain customers require a particularly sensitive approach. This discharge leaves the entrepreneur more time to focus on his core business.

Your advantage: shorten the term of the claim

Reminders can be optimized in many cases by using a factor. Especially in medium-sized companies there is room for improvement in the timely dispatch of reminders and the correct implementation of legal regulations. A timely dunning process often leads to a shortening of the receivables maturity and thus to faster liquidity.

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