Have a rapid access to your own liquidity assets
Factoring or receivables credit (B2C and B2B): an advantageous source of financing, allowing early conversion of the company’s receivables into cash assets.
In particular, factoring is suitable for young entrepreneurs with rapidly growing businesses who cannot or do not want to finance growing turnover with their own cash assets or with bank loans, and who would like to insure themselves against losses on debtors.
Factoring is a type of financing in which a financial company or factor buys other company’s accounts receivables, i.e., the invoiced money that the company is owed by your customers.
When a seller sends its customer an invoice, the factoring company pays the seller between 70% and 90% of the invoice’s value immediately. The seller gets the balance when the customer has paid the invoice.
This form of financing helps businesses with cash flow problems to close the gap between invoicing and incoming payments and solve the issues with working capital.
What is different with ‘Confidential’ Factoring?
As the name suggests, confidential factoring allows you not to reveal your affiliation with the financial organisation (factor) to your customers and thus keep your need for liquidity confidential. The basic principles of factoring will still be in use with confidential factoring.
You still raise your sales invoices as normal, and you still send the invoices to the factoring provider (factor). You still get advanced the agreed percentage value of the outstanding invoice and the factor provider still chases for payments.
The only difference is in how the factoring provider introduces itself to your customers. With normal factoring, the provider will use its own name; with confidential factoring, the factor acts as your own accounting department and uses your company name when contacting customers.
What are the advantages of using factoring?
Benefit from working capital at all times
Benefit from discounts and rebates from suppliers by paying invoices within a short period of time
Significant relief in administration
Suitable way of financing for a company in a growth phase
Protection against the various risks of non-payment by your customers (credit insurance available)
Are you still unsure if factoring is the appropriate financing solution for your company? No worries, contact our
professionals to get a tailor made advice from PrestaFlex financial experts.
Factoring is a current topic at companies in Switzerland.
L’un des produits les plus intéressants de la finance alternative. En savoir plus sur le financement par cession-bail, le crédit-bail, le gage, le créancier gagiste, le créancier gagiste, les actifs immobilisés, la finance alternative, la levée de fonds, la garantie, la croissance.
PrestaFlex has obtained three financing solutions for its client.
We have established a new relationship of trust with a company that specializes in the outsourcing of drawings in the construction sector.
Their activities are distinguished by the realization of 3D models that are used by architects and engineers on construction sites.
How to develop your business with mortgage notes?
PrestaFlex works with a vast network of partners and can help you in your development.
Discover the benefits of mortgage notes in this article.
