When you have to make a decision, the analysis of the benefits of using a service should come first of all.
That’s why we have made this page where you can consult Factoring Advantages and thus make the best decision for your business.
Faster Customer Receipts
Your business receives the sales you make on credit, so you don’t have to wait for the invoice due date (or more).
The Factoring Company advances the amount owed in invoices that are due 30, 60, 90 or even 120 days later. This makes it easier to manage your company’s treasury.
Professional Collection Service
The Factoring Company or the specialist company it relies on is used to charging customers like yours. Since they know the most common habits and forms of payment. They also know how to contact and treat their customers in a professional and friendly manner.
Increases Potential Financing
Because the funding you receive is linked to the invoices you have issued, the more you sell the more funding you will receive.
Most banks set a funding ceiling for your Company. However, by choosing Factoring, if you increase your sales you will also receive more funding.
Savings by volume discounts and payments in advance
With the anticipation of your receipts you have more cash to get better conditions from your suppliers.
As a result, this type of management can add many euros/pounds to your operating margin.
Does not increase debt
When you choose Factoring, in the Non-Recourse type, the financing your company receives does not increase debt. For, who will have to pay is not your company, but the Buyer.
Improves your Balance Sheet
Factoring, in Non-Recourse type, improves your Companies Balance Sheet. This way, your Company gets better ratings and is also rated for a higher value.
Complements credit risk coverage
With Factoring you can use the credit insurance policy you have, or get coverage from the specialist factoring company. This way, you remain safe about receiving your sales to your customers, even if they are exports.
Free Credit Ratings
Factoring companies will evaluate your Buyer’s credit quality. Thus, you are sure that you can make the best decisions while wasting time and money.
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