Your company requires a well organized and efficient approach to its financing. You strive to reduce your Days Sales Outstanding (DSO), decrease your past due Accounts Receivables, and increase your cash flow. With factoring you can receive an instant consignment of cash upon issuing your invoices as well as sales ledger management and collection services. The factoring company deals with the securitization of your debts. This is the process of taking your company's debts and turning them into positive assets. Choose one or more of the three following services that the factoring company can provide:
Management of Accounts Receivable
The factoring company opens up an account for each client and monitors the daily financial transactions of each one. This enables you to keep track of the buyer's progress and access up to date information. The factoring company can also undertake collection of any outstanding invoices if requested.
The factoring company provides coverage for up to 100% of the invoices for an approved buyer, even if they result in unpaid debts. This coverage comes into force 4 months at the most after the invoice due date.
If you wish, the factoring company can finance the invoices they have been sent. This can be done swiftly, within 48 hours of the handover or whenever you decides, by cheque, transfer, or standing order.
Invoice discounting is very similar to factoring in that it incorporates the provision of finance against the security of receivables. The only differences are that:
- the client himself is responsible for sales ledger collection and;
- the financing remains confidential and undisclosed to the debtor.