Difficulty management solutions

Secure your financing in difficult economic situations or during restructuring operations.

Requirements of companies experiencing financial difficulties

Securing financing of your business operations: replacing or topping-up banking credit lines already in place

Replacing a factor already in place

Reducing the impact of client payment defaults

Implementing out-of-court financing or collective financing plans

Receiving an emergency credit line (2 weeks)

Financing a takeover as part of a company assignment (newco)

Debt renegotiation under the aegis of a representative

The benefits of factoring

  • Sustainable financing which is adapted to company developments
  • Possible implementation in or out of court
  • Extremely fast implementation (2 weeks)
  • Resistant to change in company control

A closer look at factoring for companies experiencing financial hardship

Implementation or renegotiation of a factoring solution in or out of court

Where a company is experiencing financial hardship, whether temporary or more frequently, it can often be difficult to seek financing solutions. Banking partners tend to reduce their exposure and often cut off any short-term credit lines. Whilst historically this is a financing solution for companies undergoing growth and expansion, factoring has always been an ideal tool for companies trying to navigate their way through difficult periods. Because it uses accounts receivables as a security, factoring is more robust and sustainable than other conventional banking solutions ('Dailly Act' financing, loan, discount, overdraft facility, etc.).

Any company filing for bankruptcy or under out of court debt settlement proceedings with a factoring solution already in place should ensure that it has the support of the current partner. If this support is not confirmed, it is possible to quickly change factor. Factors do not always react in the same way faced with difficulties; indeed, some will be forthcoming in their support and have solid experience; whilst others quickly restrict their financing and seek to terminate agreements. When you have a partner prepared to offer support to companies experiencing financial hardship, a whole new range of possibilities become available. It is, indeed, possible to widen the remit of factoring, increase financing and best secure cashflow.

Business Case

Our assignment

Tender process and implementation of a factoring agreement to replace an existing factor

What we did

  • Technical risk analysis (concentration, client-supplier offsetting, assignor risks)
  • Strong involvement of our team of experts in factor auditing and during the preparation phase of the factor’s credit committee


A French sub-contractor trading in the aeronautics sector experiencing financial difficulties, and whose factor financing is key to the continuation of its activity


  • Business activities: Design and production of electrical sub-assemblies for the industry
  • Country: France
  • Clients: Companies operating in the aeronautics and automobile sectors
  • Type of contract: Confidential balance assignment
  • Credit line: €50 M
  • % of financing: 90% of assigned receivables
  • Cost: less than 1.5%
  • Term: open-ended
  • Credit insurance: delegated


  • Seeking a replacement for the current factor (deadline: 4 months before settlement)
  • Gaining equivalent financing conditions over a client portfolio heavily concentrated in the aeronautics sector

Our added value

  • Identification of technical risks and recommended solutions to allow the factor to provide a financing solution in total security
  • Issue of a credit agreement to improve financing ratios
  • Ongoing consultancy to the finance team to lead the project within the deadline imposed by the existing agreement
  • Coordination and regular oversight of the relations between the existing and new factors taking over receivables, to avoid any cashflow shortfall during transfer of the agreement

Contact us to find out the best solution to finance your accounts receivables.

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