Factoring is only for Companies in financial hardship
Unlike leasing and renting services, which are used by almost every company, this myth has accompanied the Factoring service.
In fact, all types of companies use Factoring, from micro companies to some of the largest companies around.
Factoring implies care in issuing invoices as well as managing the checking account. The ways of financing a company’s activity are varied. Therefore, some companies and financial institutions consider Factoring only after considering other financial services.
Nevertheless, for Financial Institutions, Factoring is one of the most desirable financial products to have.
If so, then why doesn’t Factoring often appear at the top of the list of Banks to Business offers? There are several reasons, such as the lack of a department for the Service and the absence of Factoring in Account Managers’ business objectives. Due to these reasons, disclosure and adherence to the Factoring service become second place. So Factoring is disregraded and often associated with struggling companies.
Think: If Factoring is suitable for sensitive situations, imagine the benefits it can have for a regular or a growing business!
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Another way of classifying Factoring has to do with the relationship of the Financier to the buyer. In Notified Factoring the Buyer was informed that the Invoices of a particular Supplier must be paid to the Financier.
Learn more about other Factoring myths
Factoring will be bothersome for my clients.
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