Get the Best Deals for the Essential Factoring Process Now

This factoring system works the opposite of traditional factoring that is to say that your suppliers will benefit from a fast and efficient payment.Your company (the originator), orders the factor in advance to pay your suppliers as soon as their bills are ready to pay.

Suppliers sign an agreement allowing the factoring establishment you have selected to anticipate, paying them for you.Your company can then benefit from a commercial rebate with its supplier. Suppliers charge the company (in paper or electronic form). Interstate Capital, factor company specialist is the best option for you regarding this now.

Your company gives its factor the invoices and bills to pay.It reimburses the factor at the normal due date of the invoices.

What are the main advantages of reverse factoring?

Your suppliers are paid very quickly.

The image of your company improves with your suppliers with the shortening of payment terms.

You can negotiate trade discounts because your suppliers are paid quickly; these rebates are often higher than the cost of reverse factoring.

You can work with a varied list of suppliers

The need for working capital (BFR) of your provider will be reduced and its balance sheet will be improved which will give you additional arguments to make him want to work with you!

What are the main disadvantages of reverse factoring?

It is your company that bears the cost of reverse factoring and not your supplier as in conventional factoring.

Factoring companies set up this kind of contract for companies.

This type of contract is not yet very developed.

Today only 3% of the factoring market is reverse factoring; large distribution groups have also created their own subsidiary to finance their suppliers. This method has been used for many years in the automotive sector.

Non-notified factoring in delegated management also known as “confidential factoring” allows the company not to disclose its use of factoring hence the term confidential.This factoring technique is intended for companies with a high turnover (minimum 1million turnover), and having:

A solid financial structure:

  • Recognized technical and administrative skills and a competent information system.
  • The company retains full control of the management of the receivables and they are not informed of the existence of the factoring contract.
  • The regulations are sent to the client company at the factor having set up the confidential factoring.
  • These regulations are domiciled in an open bank account in the books of one of its banks.
  • The factor brings the cash and the guarantee.

What are the main advantages of confidential factoring?

The use of a factoring company to cover your cash flow is not known.The image of your company remains unchanged. Your customers do not feel that you entrust the management of your reminders to a third party.

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