What Can Factoring And How Does Factoring?

What opportunities for company LIQUIDITY every company needs continuously and in sufficient volume to get liquidity to its capacity to pay. To ensure this, it is not always easy in times of more restrictive credit policy of banks for the entrepreneur. What opportunities for the enterprises: increase in current income equity funds – this is becoming increasingly rare. Often only the external investor can bring new capital into the company. Increase the existing credit lines at banks – available here may be difficult discussions with the banks. There are yet more collateral, which could lead to an increase in the line? Use of supplier credit – in today, how far is the sub-supplier still ready to give longer goals? This rule may lead to higher purchase prices? The supplier its customers to the faster payment move faster paying customers – how? By grant of discount, faster reminders target reduction. This all are not very popular and could also lead to the loss of a customer. The outlined alternatives could succeed, require at least a medium-term planning any surprises.

In the short term liquidity problems that can be solved little. An alternative to generate cash quickly is factoring factoring companies: FBW factoring Baden-Wurttemberg is one of them. Four important pillars of commercial work in one hand are bundled with factoring. e. The factoring client sold his claims to the factoring provider FBW, immediately receives 90% of the gross claims paid out. By factoring the factoring customer will receive liquidity sales congruent.

Automates its growth financing through factoring. Already in accounting at the company, which thus can make safe its liquidity planning money. According to the new rules for the credit purchase (BASEL II) on the part of the banks, a positive effect on the balance sheet is by factoring the Factoring customers. The equity ratio in the balance, increases which will lead to a better rating for banks through the reduction of the balance sheet (sale of receivables and use of the liquidity to reduce the suppliers and bank loans). SECURITY demand losses belong to day-to-day business only 13.3% of medium-sized companies have no bad debts. It is critical, if the bad debts make up more than one percent of sales: This applies to one-fifth of the company to (20.7%). This problem factoring customers no longer arises. The debt risk is taken on purchased exposures to 100% of the FBW. The profitability of the factoring customers will not be charged due to unforeseen demand losses. Continuous credit monitoring of accounts receivable the FBW BER makes a permanent risk manager of the customer. Receivables MANAGEMENT after consultation with the customer takes over FBW the entire payment process (Mahn-text, Dunning cycle, Dunning levels and individual measures and debt collection) and maintains or provides expert legal advice on judicial measures. About the overall status of the accounts receivable management, the customer is fully informed and is thus in a position to participate in critical customer relationships at any time. Incoming complaints are also immediately agreed with the customer. The FBW analyzed also the customer structure, where appropriate, in the acquisition phase.