SMEs
Find ad hoc or recurring financing to support your growth or secure your company’s future.
SME requirements
The benefits of factoring
- A quick financing solution to implement
- Sustainable immediate solution
- Outsourcing accounts receivable management
- Available during start-up phase
- 100%-digital solutions available
ZOOM: Factoring, the 1st short-term financing for SMEs
SMEs are the most likely to use factoring, particularly to support their internal and external growth.
Factoring is an effective way of improving working capital requirements, by receiving payment for trade receivables within 2 days, rather than waiting for the statutory 60 days' payment terms.
Flexible and quick to implement, factoring is more affordable than traditional bank credits or Invoice Spot Financing, even in times of high interest rates. Factoring also enables SMEs to delegate their Accounts Receivable’s management of (cash reconciliation, recovery, etc.), thereby easing the burden on these small structures while limiting the risk of late payments and payment defaults.
Backed by the company's assets, factoring also enables SMEs to manage the seasonal nature of their business or deal with emergency situations. It is the most suitable financing tool for managing cash flow.
Business case
Our assignment
Tender process and implementation of a factoring agreement with a stakeholder outside the banking pool
What we did
- Technical risk analysis (concentration, client-supplier offsetting, and assignor risks)
- Tender process open to all stakeholders on the French factoring marketplace
- Maintaining a reminder alert system so as not to affect commercial relations
Background
Digital firm undergoing transformation and growth
Features
- Business activities: insurance, telephone and energy comparison tool
- Country: France
- Clients: French SMEs
- Type of contract: conventional, with reminder tool
- Credit line: €2m
- % of financing: 90% of assigned receivables
- Cost: less than 2%
- Term: open-ended
- Credit insurance: inclusive
Aims
- To seek a sustainable factoring solution as a complement to the company’s short-term corporate financing
- To obtain competitive financing conditions via a bank other than from the traditional banking pool
Our added value
- Identifying technical risks and proposing solutions for factor financing in total security
- Comparative study of several original solutions
- Training dispensed to the finance team on various factoring products
- Ongoing consultancy for the finance team for project completion
