This website uses cookies. Cookies ensure that the website works correctly and adapts to suit your preferences. Cookies make it simpler to log in, improve the general ease of use of this site and personalise commercial messages. If you accept them, you will improve your online experience. Read the Cookie Policy.

OK
advantages

Advantages of Factoring

BNP Paribas Factoring solutions have a wide variety of different and exclusive advantages from which you can benefit depending on your business needs, models and the solution we implement.

Advantages of Factoring

  • working capital optimization
  • credit protection against bad-debts, debtor insolvency and losses
  • reduction of your DSO (Days Sales Outstanding)
  • increased debt capacity
  • transformation of  fixed costs into variable costs
  • efficiency in sourcing new customers using up-to date credit information and experience
  • credit and receivable management
  • high liquidity with increasing bargaining power and discounts from your suppliers 
  • cash-flow optimization and better forecasting
  • optimized treasury planning
  • more time to focus on core business operations

Difference between bank loan and factoring:

  • Factoring is an Asset Based Lending (“ABL”) product.
  • The emphasis is on the value of the receivables and quality of your debtors and not only on the assessment of the your creditworthiness.
  • Factoring is a flexible facility in a sense that financing is closely linked to the turnover assigned and can be utilized depending on the client’s needs.
  • Factoring may influence the balance sheet ratios of a client in a positive way (liquidity and solvency for example).
  • Factoring products provide better efficiency in terms of pricing, service time, operational workload, etc. in short-term financing.
  • Credit-insurance service for protection against bad-debts
  • Tailor-made solutions are possible depending on your needs
  • Very often higher credit facilities are possible when compared with bank loans, as they are based on the current value of the sales ledger and not on historic management information.
  • In many markets, the factor has full ownership of the receivables and therefore is not subject to any challenge from other security interests.
  • Thanks to our receivable management, factors has not only direct contact with the client, but also with the debtors
  • Risk mitigation on several buyers instead of one client.

You can benefit from more than these advantages with the privileged client-centric services of BNP Paribas Factoring Group. You can contact with us via contact button in our global and local websites or find contact details in our international presence page.