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Entrepreneur, entrepreneur, SME, big account – We offer solutions for companies of all sizes and all sectors of activity. Through this video, companiespresent its activity: factoring or factoring.

It is also to present its scope of intervention in France and the international and all of its services. BNP Paribas Factor is an innovative and digital partner for everyday businesses, enabling you to optimize your cash flow.

Here is the definition of factoring with Companies in three steps:

  • Invoice financing (BtoB activities only)
  • Outsourcing of reminders and recovery of debts
  • The guarantee against the risk of customer insolvency

In less than 24 hours after validation of your discount, your invoices are financed, which makes your cash healthier. You also secure your business relationships and this allows you to guard against the risk of failure of your customers. The invoice factoring companies are there.

Business creators, entrepreneurs, SMEs or large groups, Factor offers factoring solutions tailored to all your needs (through packages or through tailor-made solutions).

The use of Factor provides oxygen, in the form of cash, to companies that need it for their development or even for optimization reasons.

Factoring finances the WCR (working capital requirement) and brings money into the company faster, so it is a cash accelerator. In this, it is an operational solution and especially secure, facing the demands of the current economy.

To understand what the guarantee fund is in the context of a factoring, it is necessary to recall, what the definition of factoring is. Factoring is a financial solution that allows a creditor company, that is, one that has issued invoices, to be settled by a third party when these invoices are late in being settled by the end customer. This entity that will take over the outstanding receivables is called the factor. This factor will take from this reimbursement a share that will be his commission, which will allow him to build a return of money in respect of its turnover and another variable part, which will go into a guarantee fund. This guarantee fund is constituted by the factoring company thanks to all the shares deducted from each file. This part is more or less important.

When do factoring companies charge into the guarantee fund?

The guarantee fund is, as its name indicates, a precaution that guarantees the repayment of the risk that the factoring company takes if it were not to be repaid. This fund offers the possibility of having an airbag in case of non-refund. It will be able if the company that should have paid the bill is dissolved or insolvent, draw in this guarantee fund to fill the amount that has not been refunded.

What variable to adjust the contribution to the guarantee fund?

The factor will determine the risk he incurs when he grants a debt repurchase. If the risk of not being repaid is high, the contribution to the guarantee fund via factoring will be important.

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