SMEs

Find ad hoc or recurring financing to support your growth or secure your company’s future.

SME requirements

Optimising management of working capital
Consolidating accounts receivable management
Topping off 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.

Business case

Our assignment

Tender process and implementation of a factoring agreement with a stakeholder outside the banking pool

What we did

  • Technical risk analysis (concentration, client-supplier offsetting, and 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

Features

  • 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

  • To seek a sustainable factoring solution as a complement to the company’s short-term corporate financing
  • To obtain competitive financing conditions via a bank other than from the traditional banking pool

Our added value

  • Identifying technical risks and proposing solutions for factor financing in total security
  • Comparative study of several original 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.
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