10 questions and 10 answers


1. Is Factoring an alternative to bank loans ?

Factoring is a professional credit management tool

 

2. What kinds of companies find Factoring useful ?

Factoring can be useful to any company wanting to entrust management and control of its credit portfolio to a specialist

 

3. Which is the best way to use Factoring ?

Factoring is best conducted as part of a long-term relationship with a company, allowing the Factor to support administrative, organisational and financial aspects of credit management arising during the company's operations.

 

4. What are the principal benefits of Factoring ?

Rapid, secure payment of funds, a contribution to credit management and a guarantee of successful collection of the company's credits are the benefits of Factoring which customers appreciate the most.

 

5. How common is Factoring in the world of business ?

Factoring is not yet very well known, though many companies use it frequently.

 

6. What effects does Factoring have on a company's operating costs ?

Factoring can save on the cost of supply credit by outsourcing assessment, administration and control tasks

 

7. How can we calculate the real cost of Factoring ?

Factoring is a more complex service offering greater added value than bank loans. In order to assess its true economic benefits, the best terms of comparison to use are the average cost of loans and the cost of managing trade credits internally

 

8. What are the effects of resorting to Factoring on company management ?

Factoring has a positive impact on a number of areas of company management involved in trade credit management

 

9. Does resorting to Factoring mean that a company has financial trouble or difficulties in its relations with customers ?

Transfer of credits in a Factoring relationship is a normal part of corporate life; in fact, it is a sign that a company has a valid, modern organisational set-up.

 

10. How is Factoring related to banking ?

Factoring is an ideal complement to a bank's relationship with a company

 


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