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    Great Benefits of account Factoring Now

    Factoring is a short-term source of financing for companies, which means that companies must hand over their trade receivables to a factoring company (also called a factor) in exchange for financing them in a maximum period of time. 48 hours.

    The management of the post-customers can be carried out, within the framework of a contract of factoring, by the factor which raises itself your customers in order to obtain their payment at the expiry. This allows you to focus on developing your sales. The accounts receivable factoring comes up with high options here.

    Credit insurance is an integral part of the factoring contract and is mandatory. When assigning your invoices, the factor will ensure that your receivables are guaranteed against any outstanding payments. If you wish, you can choose your own credit insurance.

    Companies are always looking for simple management solutions. Factoring or “factoring” for English speakers is one of them. It concerns the post receipt of customers in the context of B2B (business to business) that is to say business-to-business, and consists in transferring to a specialized company the debts of its customers in exchange for immediately available funds.

    Factoring or assignment of receivables

    This financing technique binds a company to a factor (factor in English) through a contract in which the first assigns its bills to the second. The factoring company is a specialized financial institution that receives invoices as soon as they are issued in exchange for a contractually agreed amount. The factoring company is responsible for collecting the receivables from the client companies.

    Remember that factoring cannot concern individuals.

    The benefits of factoring

    Factoring makes it possible not to wait until an invoice expires to be paid. Your cash is enhanced by the payment upon issuance of each invoice. In addition, you do not have to worry about bill collection and the treatment of bad payers! Once your claim is assigned to the factoring, it is up to him to recover it. So you do not waste time managing recoveries and you are fully dedicated to developing your business.

    Set up and cost

    Before signing the contract, the facture evaluates the risk of unpaid invoices by analyzing your customer file. As with credit, it is the quantification of risk that determines the cost of the transaction. The factoring is paid on each invoice discount by factoring commission, financing and participation in a guarantee fund. This retention for guarantee covers the risk of unpaid invoice.

    Factoring offers a double outsourcing: that of the administrative tasks related to the cashing of the client companies and that of the risk and the management of unpaid bills. A solution to consider for all B2B entrepreneurs who want to focus on the core business!

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