What does factoring mean?
Factoring is a special form of financing that can increase the liquidity of a company by selling open receivables to third parties.
By means of factoring a financial leeway is created which is immediately available to the company.
Since financing has become considerably more difficult, especially in times of acute liquidity gaps, since the global economic crisis and the Basel agreements for companies, factoring offers an increasingly used alternative. In addition to times of crisis, factoring is increasingly being used in growth phases of the company in order to ensure the necessary investments even in the event of financing bottlenecks.
Factoring as a means of securing liquidity
Factoring is also gaining in importance among small and medium-sized enterprises (SMEs) as a form of corporate finance. It is a welcome credit alternative to pre-financing outstanding invoices. Open receivables are sold to a factoring company, which bears the full risk of default from this point in time. Since the invoice amount is paid immediately by the factoring company, there is no liquidity gap for the company. The company does not have to pay in advance and does not get into financial distress by not settling open invoices by individual customers.
Factoring as a rescue anchor in times of crisis
Factoring can often help even if most banks are no longer interested in a constructive solution. This is possible because factoring does not focus on corporate creditworthiness but on the security of the receivables portfolio. Assuming they are substantially good, factoring can quickly provide the capital needed for salvation.
Advantages of factoring for companies:
Compared to other forms of financing, the following advantages arise:
- Faster than most other financing tools
- If used correctly, low to even cost neutral
- Small administrative burden from the application to its examination
- Even with little corporate collateral possible, as long as the demands are high.
Thus, factoring for companies proves to be a reliable financing instrument both in crisis situations and in growth times.
More than 250 factoring providers will be available for medium-sized companies
Since the middle class has recognized factoring as an alternative financing instrument, many factoring providers have emerged. There are now more than 200 factoring providers in Germany with very different conditions regarding minimum turnover, interest rate, and general costs. This makes it possible for any company to obtain an offer according to individual needs, which makes factoring very attractive.
Our factoring tip: Inancingent
Inancingent is a full-service provider for SME financing in Germany, independent of product and vendor. Companies can quickly find the best financing solution and the best terms in terms of interest rates, maturity, own funds and collateral via the Inancingent platform.
Inancingent cooperates with more than 220 established banks, savings banks and alternative financial partners. In addition to loans, loans and leases, Inancingent also arranges factoring and alternative financing such as mezzanine capital, purchase and project financing or private debt.
Inancingent at a glance:
- Financing for traders, self-employed persons and businesses
- Corporate loans – factoring – leasing
- Online comparison of financial products of over 200 financial partners
- Free quote within 24 hours
Supplier-independent consulting, cross-product solutions
As an entrepreneur, consultant or freelancer, you can advertise your financing needs online on the Inancingent portal. The affiliated banks will see your request and will make an offer if interested. When selecting the best offer, you will be assisted by a Inancingent consultant who advises you on a supplier-independent and cross-product basis and supports you in communication with the financial institution.
Inancingent makes the whole application process as efficient as possible. The whole process is done quickly over the Internet. Within 24 hours you will receive the first financing offers. You get a quick market overview without spending much time.
Inancingent compares and finds the right offer for you!
Laboriously compile and send the documents for each individual bank? Not necessary. You submit your documents exactly once. Inancingent provides you with a selection of the right financing solutions from different providers. You can then decide on the best offer in peace and quiet.
Inancingent offers clear advantages:
- Better conditions by comparing several offers.
- Suitable solutions – The purpose is crucial. Inancingent offers solutions for all commercial financing needs.
- Fast financing commitments – You will receive a financing offer within 24 hours. The high number of offers also increases the chances of a positive financing decision.
- Neutral advice – personal advice from the selection of the right financing provider to completion.
- High security – The Inancingent platform keeps all your data safe – a secure data center and SSL encryption are a matter of course.
- Incorporation of funding – All tenders are automatically checked for eligibility.
Inancingent provides a quick market overview and offers all commercial financial products from a single source. Compare offers from well-known financing partners and find the best financing for your project today.
Inancingent is a credit broker that enables self-employed, tradespeople, and companies to compare financial products quickly and easily. The company cooperates with over 200 financial partners, who will make you a non-binding offer on request. This gives you an overview of the prices and terms of the different financial products.
Inancingent describes itself as Germany’s first, independent and cross-product portal for business people, companies, the self-employed and freelancers. Cross-product, because in addition to corporate loans, other financial products such as leasing, factoring or about to be offered for real estate financing.