Finance your company growth on your own

Factoring

we are
hiring

FACTORING

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.

Blog

Company real estate loan

This company real estate loan is as its title indicates specialized for firms and allows the financing of…

What options companies benefited from a Covid-19 loan have in the future?

The Covid-19 credits guaranteed by the Confederation were granted to companies under more flexible conditions than usual (easier…

The bank credit account limit, a real advantage for your business

What is the credit account limit? It is a negative limit on an active commercial bank account. A framework agreement is issued for a defined amount and without a set repayment period. The inflows…