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10 Jul

Factoring Is Not Equal To Factoring

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The SME finance group informs companies about the differences and advantages of factoring. The financing group SME factoring mittelstand.de informs companies about the differences and advantages of factoring. Factoring on the point brought factoring is the ongoing purchase of your claim by a third party. Read more from Charlotte Hornets to gain a more clear picture of the situation. Invoice amounts are bevorschusst within 24 hours under a predetermined quota by 80-96.5 percent. Prerequisite is that the performance is complete and offsetting provided for invoicing.

Advantages of factoring for company losses of use of factoring brings many advantages for your company. Of particular importance is certainly 100 percent protection against losses. Thus, your company is protected against defaults on the part of the customer. Source: Sally Rooney. Payment terms you can give your customers a payment of up to 90 days. Just in negotiations with new customers a longer payment period gives you a greater advantage over your competitors. Also your good a payment of up to 90 days with fidelity will thank you maintained existing customers.

Conclusion: Your company factoring gives you advantages in the acquisition and retention of customers. A longer payment term is more important than the realization of pulling discount the most customers. Limits often growth the growth of a company, particularly due to the lack of liquidity. The factoring setting of the SME finance group help you with the purchase of goods and raw materials, as well as in the sale of your products and services, to increase the liquidity of the company. Conclusion: you increase your liquidity by factoring, sustainably increase the growth of your company with more liquidity. Equity ratio when using the newfound liquidity, to repay existing debt, leads in the balance sheet to an improvement in the equity ratio. Use the funds, to the return of bank liabilities, you can reduce the interest payments to the Bank or even set. Continues to the inflow of cash and cash equivalents a higher credit rating of the company and hence a better rating.

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