SME Invoice Financing

The aim is to transform your B2B invoices with 30-120-day maturities into almost immediate cash, without burdening your traditional bank lines.

What PrestaFlex does

  • Conventional invoicing (with/without recourse): 70-90% advance on transfer of invoice, balance on collection.
  • Selective (spot) factoring: you choose invoice by invoice (useful for cash flow peaks).
  • Export factoring: same mechanisms, foreign customer debit (EU/UK/US), currency management and credit insurance.
  • Reverse factoring: you pay your suppliers earlier, and PrestaFlex is financed up to your due date.

Typical tickets: from CHF 100,000 to 60 million (line), B2B only.
Typical advances: 80-90% (depending on debtor quality / dilution / sector).
Indicative costs:

  • Service fee: ~0.6-2.0% of invoice amount (depending on volume/risk).
  • Interest on advance: index (e.g. SARON) + margin (often 2.5-6.0% p.a.).
  • Non-recourse" option (default coverage): integrated surcharge, advance often ≤ 85%.

Eligible if: undisputed B2B invoices, proven delivery/service, creditworthy debtors, clear payment terms.

4 examples (simple and actionable)

1) Cash requirement within 48 hours - Classic factoring

  • Amount assigned: CHF 200,000 - Advance: 85% ⇒ CHF 170,000 paid D+1/J+2
  • Cost (assumption) : fees 1.0% (CHF 2,000) + interest 4.5%/year over 45 days (≈ CHF 956)
  • Total period cost: CHF 2,956 (≈ 1.48% of invoice)
  • Profit: you collect CHF 170,000 right away instead of waiting 45 days; balance (~CHF 30,000) paid on collection, net of costs.

2) 90-day export, secure - non-recourse

  • Invoice: CHF 500,000 to a German customer, due in 90 days
  • Advance: 85% ⇒ CHF 425,000
  • Cost (assumption) : fees 1.4 % (CHF 7'000) + interest 5.5 %/year on 90 d (≈ CHF 5'844)
  • Total cost: CHF 12,844 (≈ 2.57 %)
  • Added value: transfer of default risk (non-recourse) + immediate cash to produce next order.

3) Spot factoring - A single invoice at peak times

  • Invoice: CHF 80,000 - Advance: 80% ⇒ CHF 64,000
  • Cost (assumption): fees 1.2% (CHF 960) + interest 5.0%/year over 60 days (≈ CHF 533)
  • Total cost: CHF 1,493 (≈ 1.87 %)
  • Use case: pay salaries/suppliers before a large cash receipt; no long commitment.

4) Self-financing reverse factoring

  • Monthly purchases: CHF 1,000,000 - Your suppliers offer 2% discount if paid D+10
  • PrestaFlex pays your suppliers on D+10. You pay PrestaFlex on D+60.
  • Discount gain: CHF 20,000; financing costs (hyp. 4%/year, 50 d) ≈ CHF 5,556
  • Net gain: ≈ CHF 14'444 / month (while improving supplier relations).

Measurable cash impact

  • SME sales CHF 2.4 M / year, DSO 60 d.
  • PrestaFlex advance at D+5 ~ 85%: cash freed up ≈ CHF 312'000 in established regime.
  • Effect: "perceived" DSO drops, production/purchasing capacity increases without diluting your capital.

How PrestaFlex structures your line

  1. Express study (24-72 h): top 10 debtors, due dates, disputes, dilution, concentration.
  2. Term sheet: line cap, advance rate per debtor, fees, recourse/non-recourse, notification (or silent if eligible).
  3. Set-up (5-10 typical days): assignment contract, invoice sending process (API/portal/ERP), proof of delivery, release of advances.
  4. Operation: progress advances, repayment of balance on collection, DSO/outstanding reporting, dynamic ceilings according to payor behavior.

Standard documents: debtor list, 12-month aged balances, K-bis/RC, framework contracts/CGV, RIB/IBAN, delivery documents, credit insurance policy, if applicable.

When things go (very) well

  • Strong growth, seasonality or customer lead times ≥ 45-120 days.
  • Creditworthy debtors (key accounts, public authorities, hospitals, retailers, manufacturers).
  • Sufficient gross margins (factoring cost < opportunity cost + supplier discounts + discount losses).

Points to watch (we manage them)

  • Concentration on 1-2 large customers → ceilings per debtor.
  • Litigation → advances calculated on net receivables.
  • Assignment clauses prohibited by certain principals → appropriate structuring / collection mandate.
  • Accounting: balance sheet processing according to reference framework (IFRS/Swiss GAAP FER) - we're working with your trustee.

Next step (very concrete)

Send: top 10 debtors + aged trial balance + monthly volumes.
Within 48 hours, I'll send you a personalized simulation with figures (advances per debtor, estimated monthly cost, line ceiling) and an implementation schedule.

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