Financing factoring

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Not always well known from swiss companies, financing factoring is a solution aiming to speed up and secure incoming payments. Designed for SMEs as well as independents, this solution contains several products that can either be chosen individually or as a pack to increase short-term liquidity.

Financing factoring: role of the factor

A factoring contract is usually made between a company (or an independent) and a factor (a financing factoring institution). Once the contract in place, the company continues to charge for its services as usual, except that:

• A copy of each invoice is also sent to the factor
• The factor pays an amount equivalent of 90% of the invoice to the company within 1-2 days
• The customer is paying his bill directly to the factor (in a transparent manner)
• The company receives the 10% remaining once the payment is made by the customer

Financing factoring is also B2B, meaning this product is mainly aimed at SMEs which customers are other companies.

Benefits

Using this kind of financing solution offers mainly two advantages for the company:

• Each sent invoice provides immediate cash: no need to wait for the customer's payment. Amounts who would be locked are available without delay
• Combined with other solution, financing factoring provides full protection against non-payment

A pack of products

More than a single product, financing factoring usually comes with other solutions in order to protect the company against non payment from its customers. Thus:

• Financing factoring allows to receive an advance payment for every invoice sent
• Outsourcing allows to outsource the debt collection department and improve the recovery of the defaults of payments
• Credit insurance adds more protection, as it guarantees a compensation for every unpaid invoice

A tailor-made solution

Do you own a business in Switzerland? Would you like to receive immediate cash for every invoice sent to your customers? Specialized in financing factoring and other SME products, we can help you with a tailor-made solution. Feel free to contact us for more information.