Home Receivables financing: what is it? Factors

Factors

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What is a receivables financing company?

A receivables financing company is a financial institution specialised in the financing of trade receivables. It may be a bank subsidiary or a financial company authorised by the Banque de France.

The factor enables a business to receive payment for an invoice before its due date by purchasing the receivable. Receivables financing companies thus support growth by improving cash flow and securing working capital requirements (WCR).

There are around twenty factoring providers in France, including ABN AMRO, Banque Delubac & Cie, Bibby Factor France, BNP Paribas Factor, BPCE Factor, Crédit Mutuel Factoring, Dimpl, Edebex, Eurofactor, FactoFrance, Faktus, Karmen, La Banque Postale Leasing & Factoring, Société Générale Factoring, among others.

In France, receivables financing has become a preferred funding solution for many companies seeking immediate liquidity.

Which factor should you choose?

Choosing the right receivables financing partner requires considering several key factors, including:

  • cost, which should be transparent and clearly structured
  • contractual terms and conditions
  • advance rate (financing percentage of receivables)

Beyond the commercial terms, a strong partner is a responsive factor that provides sustainable financing, continuously aligned with your liquidity needs.

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We compare factors to identify your ideal partner.

Comparing the various solutions available on the market is essential to selecting the most appropriate structure for your company and industry.

Fibus’ expertise as Europe’s leading receivables financing broker ensures that you identify the optimal funding solution. We work with a network of experienced receivables financing providers to offer you the most competitive market solutions.

By engaging Fibus, you incur no brokerage fees. Our remuneration is 100% covered by the factors.

Contact a Fibus Factoring expert

How is a factor paid?

The factor’s remuneration is made up of a financing commission, a factoring fee, and additional charges related to the set-up of the agreement. The financing commission is based on the 3-month Euribor, which is the benchmark rate used by European banks for a three-month maturity.

The factoring fee is expressed as a percentage calculated based on the volume and value of assigned receivables, the quality of the customer portfolio, and the average payment terms (DSO).

The overall cost of receivables financing varies from one provider to another and also depends on the type of agreement.

 

What risks does the factor assume?

By financing and managing the company’s receivables, the factor assumes several risks, which are reflected in its pricing:

  • Credit risk: risk of non-payment in case of debtor insolvency (the client’s customers)
  • Payment timing risk: risk that invoices are not paid on time at maturity
  • Dilution risk: risk that assigned invoices are not fully paid (discounts, disputes, returns, etc.)

 

We are partners with all factors.

ABN AMRO
Bibby Factor
BNP Paribas Factor
BPCE Factor
Coface
Crédit Mutuel Factoring
Deutsche Bank
Deutsche Factoring
Eurofactor
Factofrance
HSBC
ING
La Banque Postale Leasing & Factoring
Rabobank
Société Générale Factoring
Süd Factoring
Targo Bank