Difficulty management solutions

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.