Service and liquidity from a single source
Service and liquidity from a single source
Our Full Service Factoring solution is particularly suitable for companies who not only need immediate liquidity but also require support with arrears management as well as dunning and collection procedures.
As part of Full Service Factoring we not only take over the receivables financing and bad debt protection for your customer invoices, but also your entire receivables management. As well as reducing your administration costs this also offers other advantages:
- Variabilization of fixed costs
- Reducing the collection period
- Saving overhead costs
- Provision of updated management reports each day with customer-specific selection options
Full Service Factoring offers you sector-specific receivables management which is tailored to your individual requirements. Organizations are increasingly asking for modular receivables management structures so we cater for this requirement with our inhouse factoring product. As a result of this we also serve potential customers who require modular-based support in risk management and in the area of financing/liquidity.
What advantages does factoring offer?
Factoring offers your company numerous advantages
Your customer invoices are electronically transferred to us each day as soon as they have been issued. Normally, 90% of the invoice total will then be made available to you within 24 hours. You will receive the remaining 10 % when we have received payment from the debtor. This provision of liquidity is adapted to the level of revenues, is bank-independent and in many cases is actually cheaper than a bank loan. This means that factoring creates instant liquidity which - subject to deduction of prompt payment discount - can be used to reduce suppler liabilities and make new investments.
At the same time, you can create a clear competitive advantage for yourself if you are able to offer prepayment to customers that have a good credit rating. With our Online Portal (BOP) you can clearly monitor the development of your customers’ payment habits on a daily basis. Other positive effects include the impact on your balance sheet thanks to the sale of the receivable, the resulting higher equity ratio and improved rating.
We support you in your day-to-day business more than a pure financial services provider: Within your credit limit you get 100 % protection against bad debt loss from your customer invoices and you therefore play an active role in securing your company’s future. We provide you with sector-specific support with your arrears management work and take over the bookkeeping of outstanding items as well as the commercial dunning procedures and the judicial collection of receivables – in 22 languages and in consultation with you.
What impact will factoring have on my balance sheet?
Annual revenue: € 8 Million (gross)
Average collection period 45 days
Average receivable amount: € 1,000,000
Average collection period for liabilities 30 days
Average amount of liabilities: € 500,000
Sales of receivables creates liquidity inflow
of €810,000 (90% of the financing of the insured outstanding balance)
Liquidity can be used to reduce supplier liabilities including prompt payment discount
Liquidity can be used to reduce the overdraft liabilities
Optimization of collection periods
Increase equity ratio by reducing balance sheet total leads to better rating in accordance with Basel II regulations
no bad debt losses, full use of prompt payment discount
Save overdraft interest, support with accounts receivable management
How can I obtain an individual quotation?
Factoring provides you with greater financial flexibility for your business growth: immediate liquidity and 100% bad debt protection.
Immediate liquidity in line with turnover by means of
Up to 90% of financing within 24 hours upon transfer of invoice
Use of possibilities for discounts when purchasing goods
Providing your customers with longer deadlines for payment
Positive balance sheet effect by means of
Balance sheet contraction through sale of receivables, thereby improving balance sheet ratios (higher equity ratio)
State-of-the-art IT and account settlement system (BFS-Online-Portal (BOP))
Compatible interface for automated data transfer
Up-to-the-minute online view, 24/7, with numerous possibilities for assessment/downloading and reports (e.g. liquidity forecast, development of payment practices)
Safeguarding your data against loss of data or unauthorized access
Assumption of risk/controlling by
Protection against bad debt losses (up to 100% del credere protection)
Secure corporate development by means of reliable turnover and budget planning