Home Receivables financing: what is it? Types of receivables financing agreements Full factoring

Full factoring

Are you looking for financial support, aiming to secure your revenue growth, or seeking to outsource the management of your accounts receivable? Discover full factoring, a financing solution directly linked to your company’s operating cycle.

What is full factoring?

In a full factoring arrangement your company assigns its customer receivables to a factor in exchange for immediate payment. You no longer need to wait until the original due date agreed with your customers.

By becoming the owner of your invoices, the factor commits to:

  • financing your B2B invoices within 48 hours
  • managing your entire accounts receivable process (collections, cash allocation, and pre-legal and legal recovery where applicable)
  • protecting your business against non-payment risks through integrated credit insurance
  • covering the risk of customer insolvency

Thanks to the combination of these services, factoring offers one of the most efficient short-term financing solutions in terms of the “funding obtained” / “cost of financing” ratio.

How does full factoring work?

Full factoring involves three parties:

• the company benefiting from the factoring programme, also known as the “assignor” or “seller”
• the factoring company, also known as the “factor”
• the customer of the assignor, also known as the “buyer” or “debtor”

The process is simple:

Set-up phase

A full factoring programme is formalised through the signature of an agreement between the company and the factor. This agreement defines the conditions for invoice assignment, the total amount of receivables financed, and the level of the guarantee fund.

Fibus, the european leading factoring broker, supports you in setting up the agreement, helping you secure the most suitable terms and optimise the overall financing cost.

Financing, trade receivables management and risk coverage

Once the agreement is in place, you upload your invoices to an online platform and the factoring company advances up to 90% of their value within 24 to 48 hours. At the same time, the factor manages your accounts receivable, including cash collection, invoice matching, payment reminders, and debt recovery. Your company is protected against the risk of customer non-payment through the credit insurance policy included in the programme.

Invoice payment by the factor

At invoice maturity, your customer pays the factor directly. The factor then releases the remaining balance to your company, after deducting its commission and service fees. The remaining balance corresponds to the guarantee reserve held to cover potential payment risks, which is released once the invoice has been fully settled.

Illustration méchanisme

Benefits for your cash flow

Improve cash flow with immediate invoice financing

By converting outstanding invoices into immediate cash, your company can cover day-to-day expenses, finance growth, or invest in new projects. Full factoring enables you to receive payment for your receivables within 48 hours of assignment to the factor.

This advance on invoice amounts provides fast, uncapped and scalable financing, adapting to your business activity and development.

It also improves cash visibility by reducing dependence on long payment terms (DSO). As a result, working capital requirements (WCR) are optimised.

Outsource your accounts receivable management

Managing trade receivables can be time-consuming and administratively heavy. By assigning your invoices to a factor, you delegate the management of your receivables.

This frees up internal resources, allowing your teams to focus on strategic and value-added activities.

Receivables management typically includes:

  • monitoring customer accounts and assessing creditworthiness
  • collecting payments via calls or written reminders
  • chasing overdue invoices through amicable or, if necessary, legal recovery procedures

Secure payments and reduce risk exposure

Thanks to the integrated credit insurance, your company is protected against non-payment risk.

You benefit from coverage against potential customer insolvency or default, helping secure your cash flow and ensure financial stability over time.

Full factoring: which companies is it designed for?

This solution is ideal for all B2B SMEs that manage a significant volume of invoices and are looking to optimise their cash flow while minimising the impact of long payment terms.

Standard factoring addresses the financing needs of companies at any stage of their lifecycle: newly established businesses, fast-growing companies, or organisations experiencing financial pressure.

There are also other forms of receivables financing, such as confidential factoring, notified non-managed factoring, pan-European factoring, reverse factoring, as well as with or without recourse structures.

The Fibus promise: accelerating and simplifying the setup of your full factoring financing.

Discover Fibus’ advisory support and methodology, the leading receivables financing broker in France and Europe.

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Frequently asked questions about full factoring.

Is full factoring suitable for all companies?

It is particularly well-suited to SMEs and small businesses looking to strengthen their cash flow quickly, secure their accounts receivable, and free themselves from the administrative burden of reminders and debt collection. It is also relevant for companies with a high volume of customer invoices or those experiencing rapid growth.

What is the difference between full factoring, invoice picking, and semi-undisclosed / notified non-managed factoring?

  • Full factoring: the factor manages collections and may also assume the full scope of risks depending on the agreement.
  • Invoice picking: you choose which invoices to assign, allowing for ad hoc financing and precise control over each receivable.
  • Semi-undisclosed / notified non-managed factoring: you retain management of your accounts receivable, but invoices indicate that they have been assigned to a factor.