Improving your equity ratio through factoring
The financing- and operating flexibility gained through factoring opens up many opportunities, such as growth financing, exploiting payment discounts, and granting longer grace periods to your own customers.
With Crefo Factoring, Creditreform becomes the risk manager, conducts the solvency check and continually monitors your customers’ creditworthiness in the framework of our solvency monitoring service. Our factoring also relieves your day-to-day workload and gives your company more room for maneuver in its core business. Another positive effect of factoring and the sale of your receivables portfolio is the significant drop in your balance sheet total.
Assuming your equity capital remains unchanged, factoring will also increase your equity ratio – the KPI so vital for your company’s rating.
- Immediate payout of 80 – 90% of the bought receivable (payout of remainder upon settlement by the customer)
- 100% assumption of the nonpayment risk by Creditreform
- Ongoing solvency checks and credit limit monitoring of your customers
- Creditreform conducts summonsing and receivables collection, including debt collection if necessary.
If you’d like professional support for factoring, don’t hesitate to contact us! We’d be happy to help you.
Useful applications for Crefo Factoring
- Increase in liquidity
- Financing of investment and expansion projects
- Protection against bad debts
- Hedging of export transactions
- Outsourcing and optimization of receivables management
- Balance sheet optimization
The benefits of Crefo Factoring:
- Better liquidity resulting in more financial flexibility for corporate growth
- Reduced independence on your house bank
- Ability to respond faster to market trends
- Exploitation of payment discounts and strengthening of your position vis-à-vis suppliers
- Protection against bad-debt losses
- Supports your expansion through turnover-congruent financing
- Greater sales efficiency through solvency checks and financing guarantees already during the acquisition phase
- Outsourcing of administrative functions frees up resources for your core business
- Reduces your receivables portfolio
- Increases your equity ratio and optimizes your balance sheet structure
- Comprehensive service and regional support from your local Crefo Factoring branch.
The Crefo Factoring solutions were designed specifically for SMEs with gross turnover of between EUR 300,000 and EUR 5m p.a. (exceptions include construction, construction-related and project businesses).