Since last month it has been possible to submit financing applications via Fyndoo Advise to factoring company Alfa Commercial Finance. But how exactly does factoring work and when is it interesting for your customers?
What is factoring?
Alfa Commercial Finance offers a current account credit based on the debtor portfolio of an entrepreneur, ie the invoiced turnover. The main reason why this is often chosen is that usually more financing space can be created than with regular bank financing. In addition, outsourcing credit management often shortens the period that the receivables are outstanding. Under certain conditions, the debtors' claims are also insured against, for example, the bankruptcy of a client.
When do you choose factoring?
Alfa Commercial Finance takes over the debtor management and covers the debtor risk. Within 24 hours an entrepreneur receives 80% of the invoice value financed. This ensures that an entrepreneur can do business carefree and has flexible access to his or her liquidities. This can be interesting, for example, in the event of a company takeover, for which a temporary greater financing need arises. Or when the payment terms of creditors are short and those of debtors long. Or in the case of growth plans, such as for wholesalers who recently found financing from Alfa Commercial Finance.
A practical example
The wholesaler in question had ambitious plans, but the cash flow turned out to be insufficient to finance this growth. Due to a move, considerable savings were made on rental and personnel costs, but the annual figures for 2019 did not yet show this cost advantage. The forecast module of Fyndoo Advise has made this clear. This made it easy for the consultant to substantiate the application. The credit application was therefore successfully submitted to the credit committee, which has resulted in a good financing solution for the entrepreneur.
Thanks to the debtor financing, this wholesaler can enable further growth. Moreover, because the company can pay its suppliers more quickly, it also benefits from a supplier discount.
Not a user yet, but curious about the possibilities? Look here for more information.
Are you a Fyndoo Advise user and would you like to submit an application to Alfa Commercial Finance? Download the step-by-step plan below.