Since 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. While factoring increases your sales, the financing you receive also increases.
We all know how it works: The Bank analyzes your Company and decides how much funding can be assigned to you. It is a right and proper process that has worked for many centuries (banks have been around for a long time).
However, not all companies are equal and the business world is increasingly busy. As a result, services need to adapt to your company’s growth and sales rate.
It is no coincidence that there is much talk of digitization today. The reasons are obvious. First of all, because the advantages of these processes (speed, usability, error reduction and lower cost) are increasingly evident and sought by all companies. In addition, digitization is a process that is available to companies of all sizes.
There exist credit management specialist companies that do the hard work for you and since all the interactions will be digital it means you will can start taking advantage of the benefits of Factoring without all the effort.
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In the case of Non-Recourse Factoring, this means that there is no Recourse onto the Supplier. That is, if the Factoring Transaction has been set to Non-Recourse, in case of non-payment by the Buyer, the Supplier does not have to return the amounts that have been advanced.
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 biggest players around.
Find out about the other types of Factoring
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