Greatest Opportunities for the Proper Factoring Now

Factoring is an indispensable part of business life today. This innovative financing instrument continues to gain in importance as it significantly improves the liquidity of your company directly.

Factoring instead of bank credit

The factoring principle is simple: your company sells all money receivables from goods transactions and services to the factor. In return, you will receive immediate liquidity, approximately 80% of the respective invoice amount will be immediately transferred to your bank account, the remainder as soon as your customer has completely settled his bill, but no later than 90-120 days after the due date of the invoice regardless of whether your customer paid or not.

Professional debtor management

Factoring takes over and manages your claims comprehensively. The specialists monitor the incoming payments and write the necessary reminders. As the factoring customer, you outsource the entire debtor management to us, thus relieving your bookkeeping and your administration. And, your company saves time, effort, hassle and expense. The accounts receivable and receivables management has a modular structure and can be implemented individually in your company processes. The use of factoring invoices is also there.

Hedging against bad debts

Due to the 100% assumption of risk, your company will in the future be spared from bad debts. Our specialists for perfect accounts receivable management constantly monitor the creditworthiness of your customers and the development of the markets and can thus precisely assess your demands. You benefit from liquidity and security.

The differences between silent factoring and open factoring are explained below. Quiet factoring and open factoring differ in the type of assignment of claims. Quiet factoring means that the assignment of claims is not made public to the debtors, whereas in the case of open factoring, the sale of receivables from all customers is declared.

If factoring looks right for your business, you can fill out our factoring product form and get quotes from three leading factoring companies.

Silent factoring

Since the debtor is not the non-notification factoring over the sale of receivables is informed, is on the bill also does not appear that a sale of the debt has occurred. Thus, the customer transfers the outstanding amount to your account without the “detour” via the account of the factoring company . However, this form is unusual.

Open factoring

Open factoring means that the debtor is informed about the assignment of the claim. First, all customers must be informed about the sale of receivables. The account no longer contains its own account number, but that of the factoring company. This form is preferred by the factorization companies due to the increased transparency and security.

Import factoring and export factoring

In addition, attention should be drawn to import factoring and export factoring. If an exporter has claims against foreign debtors and sells them, it is called export factoring or forfaiting. Import factoring refers to the process when foreign companies hire a German factoring company to take on their receivables.

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