FAQ

Factoring is a financing solution that enables a business to receive payment for its invoices before they fall due. The business assigns ownership of its invoices to a factoring company (factor), which provides immediate payment. When the invoices reach maturity, the factoring company then collects payment from the customers.

It is a flexible financing tool that adapts to your priorities. It goes beyond simple cash flow support: it helps drive growth, strengthens financial ratios, and secures the development of your business.

Turn your trade receivables into immediate cash to support your business, absorb growth, and safeguard your operations.

Factoring converts your invoices into cash without having to wait for customer payment terms. This flexible financing solution adjusts to your business cycles and ensures cash flow continuity, even during periods of economic pressure.

Leverage your receivables to back acquisitions or new projects without increasing your debt burden.

During an acquisition or strategic expansion, factoring quickly frees up cash resources. It allows you to finance growth without affecting your debt ratios and helps preserve your other financing capacities.

Access flexible and guaranteed financing, even for your international clients.

Backed by protection against non-payment risk, international factoring secures your export sales and safeguards your margins. You benefit from smooth, guaranteed financing, including for debtors located abroad.

Maintain control of your client relationships while benefiting from discreet and effective financing.

With a confidential agreement, you remain the sole point of contact for your clients. Factoring provides the necessary cash flow transparently, without your business partners being made aware of the arrangement.

Factoring is exclusively designed for B2B companies. It is a financing solution suitable for businesses of all sizes: micro-enterprises, SMEs, mid-caps, large groups, and international companies.

Enhance your balance sheet and improve your financial metrics.

A non-recourse factoring agreement allows the assigned receivables to be removed from the balance sheet in accordance with IFRS standards. Factoring is considered non-recourse when the risk of non-payment on the assigned invoices is fully and irrevocably transferred to the factoring company.

Once this risk is transferred to the factor, the financing received by the business can be treated as an irrevocable payment. The accounts receivable are therefore settled. The company gains improved cash flow without incurring additional debt. This arrangement reduces current assets and liabilities, strengthens leverage and solvency ratios, and enhances the perceived financial robustness of your business to partners and lenders.

A factoring agreement is considered recourse when it allows the factoring company to return unpaid invoices to the selling business.

The factor exercises recourse against the selling company when it requests the repurchase of previously assigned invoices.

A factoring agreement is considered non-recourse when it prohibits any possibility of returning invoices. A non-recourse factoring contract allows for the irrevocable assignment of invoices.

A syndicated factoring agreement involves multiple factoring companies sharing the same accounts receivable portfolio.

The business assigns its entire receivables portfolio to a factor, known as the syndication agent, who then assigns a portion to one or more other factors, called participants. This approach allows the risk to be distributed among several factoring companies.

A factor, or factoring company, is a financial institution specialised in factoring operations. Most factoring companies are subsidiaries of banks.

All major banking groups have a subsidiary or department dedicated to factoring.

In France, there are around twenty factoring companies, including ABN AMRO, Banque Delubac & Cie, BNP Paribas Factor, Bibby Factor France, BPCE Factor, Crédit Mutuel Factoring, Edebex, Eurofactor, FactoFrance, La Banque Postale Leasing & Factoring, Société Générale Factoring, and others.

Other major players in Europe include Santander, Caixa, BBVA, Banca intesa San Paolo, UniCredit, Deutsche Factoring, Commerzbank, CofaceFinanz, Danske Bank, ABS Factoring, HSBC, Süd Factoring, among others.

Boost your cash flow and reduce your working capital needs.

Factoring can free up to two months of cash and has a direct impact on your WCR. By accelerating collections, it improves liquidity and strengthens your ability to finance growth projects without taking on additional debt.

Streamline your financial structure and gain flexibility.

As a flexible alternative to bank borrowing, factoring allows you to refinance your accounts receivable while preserving your financial ratios. Non-recourse solutions that are compatible with senior debt agreements offer greater flexibility and can help reduce the overall cost of financing.

Optimising financial terms

Financial levers to enhance a factoring programme focus both on the overall contract cost and the amount of financing mobilised:

• Renegotiating the factoring fee (factor margin)
• Reducing the financing commission (linked to the Euribor reference rate)
• Eliminating or reducing ancillary fees (setup fees, manual processing, reminders…)
• Increasing the financing ratio (% advance on the invoice)
• Reducing the guarantee reserve to free up more cash
• Delegating trade credit insurance

Optimising operational processes

• Automating receivables assignments via management software
• Accelerating processing and financing times
• Implementing dashboards (KPIs, alerts) for better client management and monitoring
• Optimising settings in the factor portal
• Supporting internal teams (finance, order-to-cash)

Optimising contractual terms

• Removing or relaxing restrictive clauses (duration commitment, exclusivity)
• Easing termination conditions
• Revising eligibility criteria for customer receivables
• Removing recourse clauses if a trade credit insurance policy is in place

Optimising strategic levers

• Segmenting factoring by entity, country, or client type
• Achieving IFRS deconsolidation through a non-recourse factoring contract
• Using multi-factor scenarios (syndication) or assigning a dedicated factor per BU/country

Fibus monitors the progress of your factoring contract to optimise your financing and cash flow management. This includes training new staff, providing on-demand assistance, performance review meetings, optimisation of contract terms, and extending the credit line (for new entities or new debtors).

Our factoring brokers are dedicated to maximising the efficiency of your financing, ensuring smooth operations with the factor. The Fibus approach guarantees relevance, performance, and alignment with your financial objectives.

High-performing contracts… or just contracts in place?

Your factoring programmes were likely well negotiated initially. However, markets, interest rates, and your business needs evolve. What worked yesterday may now be too costly, provide insufficient coverage, or constrain your cash flow.

Using an exclusive methodology, Fibus conducts a comprehensive and confidential audit to identify:

• Factoring and financing fees that are above market averages
• Restrictive or unsuitable contractual clauses
• Insufficient customer risk coverage
• Missed opportunities for accounting deconsolidation (IFRS, Local GAAP)
• Poor integration between trade credit insurance and factoring

We provide a clear, actionable review of your contract to pinpoint areas for improvement in the short and medium term, strengthening your financing capacity and enhancing your financial ratios—without changing providers if it is not necessary.

Fibus is an independent broker, specialising in factoring since 2006, and a recognised player in Europe.

We provide finance teams with a proven methodology, in-depth knowledge of French and European factors, and a structured advisory approach that makes the process simple, fast, and reliable.

In a market where offerings vary widely between providers, Fibus helps you save time, make secure decisions, and obtain the best financing conditions for your business.

Our services cover the entire project lifecycle: analysis, tendering and evaluation, negotiation and implementation of the financing line, and continuous optimisation of the programme throughout the contractual relationship.

Save time

→ Reduce your internal workload and move faster

• Outsource and accelerate the management of your financing project.

Secure your decisions

→ Make informed decisions, at the best cost and with lower risk

• Objectively compare factor offers to identify the best model for your business.
• Obtain the highest possible financing ratio.
• Benefit from truly competitive contractual and pricing conditions.

Understand and master the market

→ Gain control to choose financing that truly fits your situation

• Access the most relevant factoring partners via a single point of contact.
• Receive guidance on market best practices.
• Identify the solution best suited to your context (growth, LBO, restructuring, debtor quality, geographic coverage, number of subsidiaries…).

Frame your factoring project

→ Build a programme that is perfectly sized and monitored

• Precisely quantify the financial contribution of factoring (cash flow reliability).
• Identify business segments compatible with financing.
• Define and track key programme KPIs.

At Fibus, we do not offer a standard solution, but rather a factoring structure tailored to your business model, finance organisation, and growth or transformation objectives.

We support you in selecting, structuring, negotiating, and managing the most appropriate solution, both in France and internationally.

Factoring solutions structured around your cash flow needs

• Balance sheet financing: Maximises available lines and smooths cash flow requirements.
• Confidential factoring (non-notified): A discreet solution, fully integrated into your organisation, with no impact on client relationships.
• Classic factoring (full factoring): Complete outsourcing of both financing and receivables management.
• Notified factoring, self-managed: Secured financing while retaining operational control internally.
• Non-recourse (deconsolidating) factoring: Optimises the balance sheet and financial ratios in line with IFRS requirements and covenants.
• Recourse factoring: A flexible solution, suitable for controlled growth scenarios.

Trade credit insurance is a solution designed for businesses to protect their accounts receivable and safeguard against unpaid invoices. It provides coverage for commercial receivables against the risk of client payment defaults.

When properly structured, trade credit insurance becomes a management tool: it helps control customer risk, secure financing, protect margins, cover commercial and political risks, and enhance your company’s financial performance.

Trade credit insurance protects your B2B invoices against non-payment, late payment, and client defaults.

It helps safeguard your cash flow and margins while strengthening your business’s resilience against economic uncertainties.

Beyond providing coverage, trade credit insurance encourages a more proactive management of accounts receivable.

Monitoring collections, detecting early warning signs, and improving dunning processes become levers for operational performance.

A group-wide contract allows you to unify practices, harmonise customer risk management, and gain a consolidated international view.

You improve responsiveness and consistency while maintaining controlled autonomy for your subsidiaries.

Trade credit insurance is designed exclusively for B2B companies, that is, businesses invoicing other companies or public institutions. It is suitable for businesses of all sizes, from micro-enterprises and SMEs to large corporates.

A well-structured trade credit insurance contract reassures your financial partners — factors, banks, and investors — and facilitates access to financing for your accounts receivable. It serves as a mark of solidity and transparency across your entire financial ecosystem.

With an average cost of around 0.15% of your insurable turnover, trade credit insurance is an affordable solution, with premiums that adjust according to your claims experience. Our brokers assist with the analysis, negotiation, and implementation of the policy best suited to your business and risk profile.

Full cover policy (coverage from the first euro): The entire insurable turnover is covered. It protects both domestic and export sales and covers risks of declared or presumed insolvency.

Excess of Loss policy: Provides indemnification for losses above a defined deductible. Designed to cover so-called “exceptional” losses. The insured retains responsibility for a certain amount of unpaid invoices, and the insurer intervenes once the annual deductible is exceeded, up to the disbursement limit specified in the contract.

Numerous credit insurers operate across the European market, including AIG, Allianz Trade (formerly Euler Hermes), Atradius, Axa, Cartan Trade, Cesce, Coface, Chubb, Credendo, Groupama, and others.

Trade credit insurance plays a key role in improving access to a factoring facility.

When setting up a factoring contract, factors require robust coverage of accounts receivable and rely on the quality of your invoices to provide financing. A receivable covered by trade credit insurance is viewed as more secure. The factor anticipates fewer potential losses and is therefore willing to finance a larger portion of your turnover.

Trade credit insurance allows you to:

• Access additional financing: increase available financing lines
• Benefit from better financing conditions
• Gain greater visibility over your receivables and their associated risks

While trade credit insurance protects your receivables and secures client payments, when properly structured it can also enhance your factoring financing. Optimising your insurance policy is crucial to improving coverage and, consequently, your financing capacity.

By covering the risk of client insolvency, trade credit insurance provides a guarantee on the receivables financed. With this security, the factor is more inclined to finance a larger volume of receivables. The amount of factor financing grows in line with the extent of client coverage.

A trade credit insurance policy supports factoring finance by enabling:

• Expansion of factor coverage (e.g., when certain clients are excluded from guarantee)
• Improved financing conditions
• A consolidated view of customer risks

In short, trade credit insurance secures and maximises your short-term financing.

Extend your risk coverage

• Increase acceptance rates by adjusting requests
• Negotiate higher limits for strategic clients
• Expand coverage to new markets or client types
• Include specific contracts (export, key accounts)

Optimise contractual terms

• Negotiate deductibles, waiting periods, and reporting thresholds
• Adjust clauses on termination, renewal, or automatic extension
• Redesign the policy format (global, excess of loss, third-party pay, etc.)

Optimise operational aspects

• Actively monitor guaranteed lines (tracking and follow-ups)
• Proactively manage arbitration requests
• Automate exchanges with the insurer
• Implement clear procedures for notification, collection, and claims management

Delegate to optimise financing

A trade credit insurance policy included in a factoring contract is often less flexible and more limited, which can reduce the effectiveness and scope of your coverage. A delegated trade credit insurance policy allows you to:

• Access higher credit limits
• Cover more clients (including those initially refused or partially guaranteed)
• Benefit from more detailed risk analysis, based on daily updated data

Fibus partners with all major credit insurers, including the top three (Allianz Trade, Coface, Atradius), to coordinate trade credit insurance and factoring, offering your business the most effective solution:

1. More non-recourse financing
2. Broader coverage
3. Better service structuring
4. Reduced management time

Fibus Trade experts ensure the continuous improvement of your policy performance. Their support includes:

• Daily monitoring of risk coverage
• Advice and management during claims
• Assistance with arbitration requests
• Performance tracking, including acceptance rates
• Oversight of extensions, renewals, or contract renegotiations

They work with you to optimise the coverage of risks associated with your customer invoices.

Accounts receivable represent one of the key assets on a company’s balance sheet, making their management a central concern for finance teams.

Securing commercial development

• Protect the business against client defaults
• Support sales in new markets
• Enable sales teams to take calculated risks

Effectively managing customer risk

• Structure your coverage policy
• Monitor outstanding balances and credit limits
• Oversee insurer decisions

Strengthening the company’s financial resilience

• Improve visibility over risks
• Secure cash flow
• Facilitate access to financing backed by trade receivables

Phase 1

Tailored service

• A highly adaptable team to fully understand your internal processes
• Proactive contacts who streamline communication with the insurer to avoid bottlenecks

Phase 2

Continuity of service and high availability

• Consideration of business seasonality: managing peaks (year-end, product launches), strengthening arbitration meetings at critical dates, and assigning a backup team during holidays

Phase 3

Proactive risk monitoring

• Active vigilance on insured clients with alerts on potential risk situations
• Rapid adaptation to portfolio changes; close monitoring of 22 accounts over €500K

Phase 4

Centralised, multi-dimensional expertise

• A Key Account Manager serving as the single point of contact for a multidisciplinary team covering all aspects of the contract
• Independent management benefiting from conditions of potential group integration

With ARI Trade, a solution developed by Fibus Digital. It is the only digital platform that brings together all the parameters needed to optimise factoring programmes—including trade credit insurance—regardless of the number of countries in which your business operates.

Key features include:

• Multi-contract and multi-currency assignments consolidated and automated
• Global overview and decision-support dashboards
• Automated variance analysis
• Analysis of assigned vs. unassigned activity
• Risk control through integration with trade credit insurance via API
• Factor compliance management

Yes — ARI First brings together all the parameters needed to optimise factoring programmes. It allows you to quickly connect your accounting system to factor formats and easily manage your assignment scopes.

Key features include:

• Multi-currency assignments
• Automatic creation of assignment files in factor formats
• Automated analysis of customer balances
• Automatic detection and analysis of balance discrepancies
• Simple identification, qualification, and selection of clients to assign
• Optimisation of assignment scopes

Cetrafact meets the technical requirements of your factoring contract with a tool compatible with all factoring companies and accounting software.

Key features include:

• Identification, qualification, and selection of debtors
• Generation of assignment files in factor formats
• Discrepancy analysis
• Overview of assigned vs. unassigned turnover
• History of assigned invoices
• Factor compliance