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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.

Role of the factor

This type of solution is a contract is usually made between a company (or an independent) and a factor. Once the contract is 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 a B2B solution, meaning this product is mainly aimed at SMEs which its 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 that would be locked are available without delay
• This solution 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 default payments
• Credit insurance adds more protection, as it guarantees a compensation for every unpaid invoice

A personalised 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.