Factoring is a financial instrument which, even in Germany, is experiencing continued growth. Factoring is adjusted to the individual requirements of the company. There are silent procedures, public and full-service procedures, depending on what best suits the claim inventory to be financed. The factoring of german VOB-receivables of constrution works is also possible. Factoring functions as an additional financing pillar complementing the banks. The following benefits can be implemented:
- liquidity, coversion of receivables in bank balances
- an additional financing path, that automatically increases with outstanding debts without having to renegotiate
- protect claim inventory and transfer non-payment risks
- improve rating through balance sheet contraction
- individual outsourcing of components, such as credit checks, arrears billing, and collections etc. are possible
- reduction of costs, such as for financing personnel and the management of claim inventory
The additional liquidity makes it possible to profitize upon purchasing benefits due to the utilization of suppliers accounts and payments received will generally be shortened due to the good credit management. Bank liabilities can be reduced. The resulting balance sheet contraction increases the net worth share and improves one’s own rating.
We have many years experience with prestigious factoring companies and search for the suitable suppliers for our clients, also those who are in difficult industries, and will take care that the transaction process goes smoothly.