SMEs
Negotiating ad hoc or recurring financing to support your growth or secure your company’s future.
SME requirements
Optimising rolling cashflow requirements
Consolidating accounts receivable management
Topping up or replacing your short-term bank financing lines
Financing organic growth and commercial development
Reducing the impact of client payment defaults
The benefits of factoring
- A quick financing solution to implement
- Sustainable immediate solution
- Outsourcing accounts receivable management
- Available during start-up phase
- 100%-digital solutions available
A closer look at factoring for SMEs
Working with a bank or a fintech?
Over the last decade or so, the debt financing market has seen fintechs arrive on the scene.
As a contraction of the words “finance” and “technology”, thanks to the digital age, these firms seek to streamline company access to financing solutions. They are intended to be simpler and quicker than traditional banks. Their solutions may be used in addition to or instead of banks. They propose different terms of funding (commercial eligibility, cost of financing, etc.)
How do you choose between a fintech and traditional factor?
The choice depends largely on four criteria: the total amount, the urgent nature, the recurring need for financing and the price.,
In making a choice between factors and fintechs, you first need to analyse your financing requirements at the time and also try to anticipate future requirements.
Why use a factoring broker?
Brokers assist you in classifying your financing requirements. They offer advice and help guide you towards the best solutions. They also offer you access to the entire factoring marketplace with a single study. Brokers propose a comparison of the cost and financing potential for each solution. The economic model used by brokers allows you to receive highly technical advice, at no extra cost.
Through Factorland, Fibus gives you the chance to access all stakeholders on the French market and proposes its 16 years of high-level experience to help you choose the most suitable financing solution.
Business Case
Our assignment
Tender process and implementation of a factoring agreement with a stakeholder outside of the banking pool
What we did
- Technical risk analysis (concentration, client-supplier offsetting, assignor risks)
- Tender process open to all stakeholders on the French factoring marketplace
- Maintaining a reminder alert system so as not to affect commercial relations
Background
Digital firm undergoing transformation and growth
Characteristics
- Business activities: Insurance, telephone and energy comparison tool
- Country: France
- Clients: French SMEs
- Type of contract: Conventional, with reminder tool
- Credit line: €2M
- % of financing: 90% of assigned receivables
- Cost: less than 2%
- Term: open-ended
- Credit insurance: inclusive
Aims
- Seeking a sustainable factoring solution as a complement to short-term corporate financng
- Gaining competitive financing conditions via a bank other than from the traditional banking pool
Our added value
- Identification of technical risks and proposal of solutions for factor financing in total security
- Comparative study of several solutions
- Training dispensed to the finance team on various factoring products
- Ongoing consultancy for the finance team for project completion
Please visit our Factorland website to find out more about factoring solutions for SMEs.
