Essential Options for the best Factoring Companies

Factoring companies present the management of receivables (factoring) generally as a package of three services.

  1. Credit insurance guaranteeing the company against unpaid bills. These are considered as claims and reimbursed up to 80 to 100% excluding taxes according to the contracts, as in a conventional insurance mechanism.
  2. Management by the factoring company of the receivables of the company: recognition, collection, recovery and recovery of invoices.
  3. Cash advances on part (or all) of the Company’s unmetered trade receivables, in exchange for the transfer of these receivables to the factor. Of course, this one selects the risks. He does not finance the receivables on customers whom he considers to be little or not solvent. On the other hand, once a claim is accepted, the corresponding funds are normally paid within 48 hours. Factoring companies easily believe that the first two services: credit insurance and customer account management, are mandatory if we want the third: financing, which is optional. As luck would have it, it is obviously this last one, which makes it possible to obtain fresh money, which is the most interesting! For the factoring companies this is important.

“To protect against unpaid, we can subscribe to credit insurance with a specialized company.If you want to delegate the management of its receivables, experts recovery or recovery are not lacking. The ease, flexibility and speed with which factoring provides cash is an unmatched asset, “says an expert in brokerage and factoring advice. Persuaded that there is no alternative to the “three in one package”, many companies subscribe to one, even if it does not stick to their needs. What a pity! If they pushed the factoring companies into their entrenchments, they would be surprised to see that beyond the standard menu displayed most of

Know it!

If you plan to use factoring, analyze your needs, then launch a call for tenders from different service providers: their ability to tailor from the “catalog” offer can vary greatly from one to another. ‘other. “In addition, I recommend that all companies wishing to take out credit insurance should first buy one from a specialized organization, and then only to request the factor, by proposing a delegation of this credit insurance, indicates An independent consultant The factors have nothing against this formula, which has a double advantage: each provider does the job he or she masters best and, if the company wishes to interrupt its factoring contract, she can do this while continuing to benefit from credit insurance. “

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