THE ENGINE OF CORPORATE SUCCESS

Low equity ratios, generous credit terms, uncertainties surrounding the payment practices of new clients – the reasons for selling one’s receivables instead of taking out additional bank loans are manifold.

Factoring involves the purchase of the accounts receivables from transactions for goods and services by a factor (a factoring company) for a fee. As a result, the company gains an enormous increase in liquidity through the immediate injection of cash into its current assets, in addition to the certainty of being paid. The accounts receivables are turned into cash so that the company can, for example, take advantage of the full cash discount on all supplier invoices and can often achieve interest effects of over 30 percent.

Factoring thus becomes a way to both avoid crises and bring about growth, which serves as the engine for your commercial success.