Perfect Factoring for You Right At the Moment

Factoring or “factoring” makes it possible to quickly dispose of money from your invoices or receivables, without waiting for their due date. It is the specialized establishment (factor) to whom you give them that will advance the payment. The factor can take care of everything related to these invoices: monitoring, recovery, recovery or even bear the risk of unpaid invoices if applicable.

The factoring contract

Who is factoring for?

How are your factoring operations going?

What happens in case of unpaid bills?

Principle

In response to your financing needs and if you agree together on a factoring solution , your advisor will put you in touch with a finance company or a specialized institution called “factor”, which is often a subsidiary of the bank.

To know

As with any financing, the ‘ factoring is subject to the consent of the financial institution.

The factoring contract

The factoring contract between the factor and your company sets the framework in which you assign your invoices.

As soon as the contract is signed, you can hand over your customer invoices to the factor as and when they are issued: you pay the amount indicated in the contract and ensure the recovery of the debt when due. Fine deals for the best factoring companies are there now.

To guard against a possible settlement problem (assets, litigation, unpaid …), the factor assesses the risk it takes and establishes a guarantee fund accordingly. To feed it retains, as and when the first bills, a sum proportional to the outstanding amount of your receivables (that is to say all the invoices issued by your company on your customers). Once the fund is established, the factor can then finance up to 100% of the amount of your bills. The sums remaining on the guarantee fund are returned to you in the event of termination of your relations with the factor or of non-renewal of the contract.

Who is factoring for?

The ‘ factoring s ‘ open to all companies, craftsmen, traders, associations, professionals, micro-entrepreneurs:

Whatever their sector of activity,

Whatever their size,

Whether they export or not.

Customer invoices must relate to private companies or public bodies.

To know

Your business can not benefit from factoring if your customers are individuals.

How are your factoring operations going?

For each client company, you must provide the factor:

The total outstanding amount of the invoices you intend to entrust to him,

The factor analyzes the situation of the customers concerned. It measures the risks to be incurred before giving you an agreement on the level of guarantee of your claims for each of them.

As soon as you sign the factoring contract, you can give the factor a copy of the invoices you have issued, mentioning the payment terms granted to your customers. These discounts can also be dematerialized.

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