Reverse factoring is a bank-independent purchase financing whereby three parties form a collaborative contract together – your company, your supplier and the factor. Instead of you settling your receivables immediately, the factor pays your supplier promptly. That means you can exploit the full potential of credit periods and transfer the invoice amount together with interest to the factoring company at a later date. The supplier’s receivables must be free of third party rights.
Unlike classic purchase financing, with reverse factoring sale of individual invoices is not possible. As well as this, there are often more requirements with regard to the volume and creditworthiness of the parties.
Reverse factoring demands a high level of expert knowledge: it’s important to understand the reinsurance potential, additionally the analysis is very complex and the implementation with the supplier is often time consuming. There are also not that many providers which doesn’t always make it easy to find the right one in each case. We can not only help you to identify the best provider, but also remove the time consuming work involved in drafting the contract so that you can concentrate on your core business.
Our areas of expertise
Optimise your risk management and secure your debts against payment defaults.
With the help of purchase financing you can ensure you get early payment discounts and rebates without being constrained by deadlines.
Through trade financing you can secure liquidity for trade and protect yourself against economic and political risks.
Using inventory financing you can convert your tied up capital in inventory into additional liquidity.
As with factoring, you sell your account receivables through forfaiting. Thereby profiting from additional liquidity and protecting you from bad debt.
Longer credit periods for the buyer, faster liquidity for the suppliers – with reverse factoring both profit.
With factoring you can convert your account receivables into direct liquidity and create financial freedom for your company. Additionally, you are protecting yourself against bad debt.
Through leasing, capital goods – from production machinery through to IT systems – are not purchased but instead can be used over time. As there are no purchasing costs, leasing protects the liquidity.
As your business grows so does your financing requirement. We can help you to get additional credit lines from banks.
Not all invoices are paid within the due date – in these situations debt collection companies can help you with the dunning process right through to legal foreclosure.
Trust is good but knowing in advance is better: avoid payment defaults and get credit references and credit worthiness reports about your business partner.
Using capital goods credit insurance, safeguard production risks as well as lengthy credit periods.
With guarantee and surety insurance, the insurer undertakes warranties, guarantees and similar sureties in order to fulfil your liabilities.
Additional Top-up cover helps to avoid shortfalls in credit insurance policies.
Single-buyer credit insurance protects you against the default risk of individual buyers.
The multi-buyer policy is a special type of credit insurance which allows you to insure a selected group of clients.
Protect yourself with retrospective coverage against insolvency disputes.
A lot of business transactions are based on trust. Insure your company against abuse of this trust from personnel or fraudulent internet crime.