Why Factoring Invoices Come Up With the Essential Options

How do you ensure the payment of your debts? Factoring is an answer to this problem.

What is factoring? Definition:

By passing through a third party, the risk of non-payment of your bills is controlled. This intermediary is called the factor. He will cash for you the regulations of your customers to then pay you the sums collected.This financial institution allows you to make the receipts more reliable and will be responsible for collecting the receivables.This is for you a real guarantee for the good health of your cash since each invoice issued is certain to be honored immediately.This financial gain is also a productivity gain because you are totally free to run behind customer settlements. The factoring invoices are there now for this.

Time to spend on tasks with greater added value

Nevertheless, this service has a cost that must be weighed against the service performed. It is also possible to use a less comprehensive service in the form of credit insurance to cover the insolvency risks of its client portfolio.

Credit insurance, factor … we talk about it on the internet

Is it really profitable?

Extract: “Factoring seduces more and more companies that want to relieve their cash  … Modern method of managing the receivables, it is also a rather complex financial solution.All that you always wanted to know without ever daring to ask. “… How to choose the provider company…

A solution for the financing of the BFR

Following an article about the new economist, the author reviews the types of contracts: from classic factoring to reverse factoring.

The blog of Cash & Credit Management

The essential to know

This article recalls some points to know: services covered (financing of receivables, recovery of debts …), the most common errors of appreciation.

Some practical tips as a bonus

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A complete file on the technique

Contents of this file: Benefits and practices? How much does it cost ? What is the holdback? What does the factor do and how are the risks distributed? What is credit insurance?

Settle your cash worries

Managed factoring differs from conventional factoring in that in these techniques the firm does not benefit from short-term financing from the factor. Only the management of the receivables is transmitted. Managed factoring is used for companies that only want to entrust the management of their trade receivables to professional structures for performance needs and management cost savings.

With unmanaged factoring, the management and collection of the customer receivable is retained by the company. It only looks for funding from the factor. However, a subrogative notification must be made to the client indicating that the claim has been assigned to a factoring company. Unmanaged factoring is useful for companies that want to maintain a direct relationship with their customers but need cash at some point.

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