Factoring is a solution of companies receivables management, allowing them to benefit from funding to substitute for traditional bank loans or complete them.
Factoring is based on the sale of receivables to a specialized institution, the factor which enables the company to meet its cash requirements and be accompanied in all its stages of development.
And factoring includes customers warranty, collection and management of regulations.
It just sat on information and credit insurance in the receivables management system: a flexible solution through a cash contribution following the changing of the business needs.
Who is factoring for?
Factoring is open to all companies working themselves with companies or public bodies, regardless of their size and industry, whether exporting or not.
Increasingly, the growing demand for competitiveness highlights the advantages of outsourcing of receivables management for better concentration on the business core, raising the quality of services offered to customers and better meeting business objectives.
At the same time, business efficiency increases and management or production costs are reduced or stabilized.
Through factor, receivables due are transformed into cash contribution and costs are controlled.
Why factoring?
Securing and financing receivables are among the main concerns of the entrepreneur.
Effective management of this position is therefore essential to:
• enable the development of sales,
• while reducing costs and risks associated with days sales outstanding and unpaid.
Factoring is a permanent solution to short-term finance: risk prevention, rapid financing of receivables, monitoring, reminders and accounting. By outsourcing the management of customer receivables, the company provides three advantages:
• transform fixed costs into variable costs,
• optimize the administrative management,
• secure financial management.
The weight of customer accounts in a company represents on average 40% of its assets.
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