Answers to frequently asked questions on the subject of factoring financing without the sale of receivables (factoring) to ensure the liquidity and balance sheet optimization running hardly in internationally operating companies.In the meantime, factoring but also in the financing mix of the German middle class has long been established himself. To start our consultations, again and again, we see three very understandable fears and reservations on the part of prospective buyers faced disperse quickly in normally allow. In the following post, I would like to analyze this closer. Are the costs associated with factoring not too high? Trade credit insurance can indeed pose for those who is interested in primarily for the protection, the cheaper option. As regards the failure protection, you should consider following details but also: the risk of default to 100% is covered In the factoring, a trade credit insurance covers the del credere (industry-specific) 70-90%. In the factoring is also regularly agreed a protracted default, i.e. the failure of which will demand is (usually) 120 days after maturity.
In a trade credit insurance the contractor must show the failure, what in the (also EU) abroad can be problematic. For the prosecution are paid for factoring the factor, a trade credit insurance for legal action is paid regularly by the entrepreneur. At Hyundai you will find additional information. Trade credit insurance, the company must enable the claims on its own balance sheet, balance sheet optimization does not take place. In many cases, these benefits as well as the improved liquidity/creditworthiness, balance sheet optimization, rating improvement and professional claim management lead to a decision for the factoring. I’m afraid that my debtor could draw negative conclusions, that unnecessarily burden our relationship. Here we can reassure you.
In practice, we see mostly the opposite. Today it is factoring a known and recognized Form of financing. The strong growth underscores the importance in today’s funding mix. Factoring has become a standard. Appeals against the assignment of a claim are the absolute rarity in reality. Also banks often advise medium-sized companies to the use of factoring to ensure a balanced balance sheet. I may lose control of my debt payment behavior under any circumstances. Factoring is opaque to me. Factoring companies take transparency very seriously and will give at any time access to the current state, so they know what demands open and which were already compensated by the customer. Other credit checks of their debtors come to this if necessary. Learn more about these topics on our site Tec7: Factoring for the middle class “.” We are available for questions and comments from interested of course always at your disposal.