Archive for July 2018

Fine Opportunities for the Best Factoring Companies

The payment morale has fallen significantly in recent years, not only in here, but worldwide. Many companies have to wait longer and longer for the bills to be paid. This leads to immense problems for the enterprises, because they are compelled thereby to compensate for the loss of receivables by own financial means, but must finance at the same time the running enterprise. Not infrequently, the companies then get themselves into a certain imbalance due to the payment default or the clearly delayed payments. Getting the factor companies to get the support is possible now.

Surely you have had dealings with clients who are unwilling and unable to pay, and know what problems are causing late or outdated payments. Just the additional administrative effort to collect the receivables poses major problems for many companies. One solution to this problem is factoring. It was originally developed in the USA, but arrived in the 1950s to Europe and thus to Germany.

What is factoring?

  • Expiration of factoring
  • Factoring costs
  • Advantages factoring
  • Functions of factoring
  • Forms of factoring

What exactly is factoring?

The widespread opinion about factoring is that this is a lending business. That’s not true. You act as a factoring customer, often referred to as a follow-up customer or cedant. The claims that you have towards your customers, which are also referred to as debtors, debtors or third party debtors in factoring, you sell to a factoring company, the assignee or factor.

This company then drives all the claims for you, paying you the receivables with the purchase. A percentage is deducted which remains for the factor as earnings. It is therefore actually a factoring purchase transaction   and not just the classic lending business.

Expiration of factoring

Of course, in order for your factoring to make sense for your business, you need to know the exact process of this business. Here it comes first to the contract between you and the factoring company. You can decide whether you want to sell all receivables to the factor or only the demands on a specific customer group. As a rule, only receivables for the factoring are used, which arise after the conclusion of the contract, however, you can sell already existing demands by clever negotiation. The contract is purchased in practice for at least two years, but often over four to five years.

 

Process factoring

The factoring company conducts a credit check on your customers, before the contract is concluded, but also during the term of the contract. On the basis of this creditcheck, it sets limits up to which it bears the risk of default. The better the creditworthiness of your customers, the higher the payouts of the factoring company to you.

Your receivables are purchased by sending your invoices to customers to the factoring company. This now checks the bills for accuracy and then buys the claims. The purchase price will be paid to you immediately after the agreement or after a certain period.

Last word

Customers whose credit rating has not yet been checked by the factor must first be checked before the purchase price is paid. The purchase price is initially reduced by ten to 20 percent. This is also called the security deposit. Factoring companies retain these in order to compensate for discounts, discounts, discounts or complaints on the part of their customers. Once the customer’s money has been received, this difference will be paid to you.

Find Your Treatments in the Right Place

Everyone, including those who have tried different variants in the treatment of drug addiction and alcoholism, the rehabilitation center gives a reliable chance to get rid of the addiction.It does not matter how much alcohol dependence you have reached, how much time and what drugs you use – smoking mixtures or methadone, amphetamine.

After drug abstinence syndrome and general therapeutic care, you must go through a full rehabilitation course. Psychiatrists and psychologists of the narcological rehabilitation center will help to understand themselves and neutralize the motivations that prompted the use of narcotic substances and alcohol. The process of detoxing oxycontin is not easy and that is the reason that you can bring the best deals now.

A comprehensive treatment program is also supplemented with a social component. In the rehabilitation center for drug addicts and alcohol addicts are assisted in the issues of resocialization and help to return to school, work, and family.

Drug addiction and alcoholism in figures

The regional narcological service informs that in the Voronezh region about 70,000 people consume drugs of varying degrees. In the city, 2,4 thousand points related to the drug business were recorded. At the same time, the availability in places in narcological clinics is 0.99 with a rate of 2 beds per 10,000 population. Doctors are also concerned about the growth of alcohol addicts and a high percentage of deaths in their environment: an average of over 1,500 people with alcohol poisoning enter the hospital annually, 60% of them cannot be saved.

Treatment of drug addiction in the rehabilitation center

  • In the center you will be offered to clean the body of harmful substances – this is a standard approach, treatment of drug addiction elsewhere will also begin with detoxification. Dependence is caused even by drugs of vegetable origin, and then what about other “chemistry”?
  • The treatment of drug addiction must be taken seriously. The greatest danger is the psychological craving for the narcotic substance, which no drugs can neutralize. Therefore, the treatment of drug addiction will take a long time; the experts will be rehabilitating the patient psychologists, psychiatrists, social counselors.
  • There are various trainings, exchange of experience in the groups of mutual support, comprehensive education, and development of creative talents. But such an integrated treatment organization is guaranteed to be reassuring, drug addiction will be defeated.

Treatment of alcoholism in a rehabilitation center

Crossing the line separating drunkenness in everyday life and alcohol dependence is easy. Take urgent measures, start treatment for alcoholism, the center will help you in this. The fight against cravings for alcohol provides for a comprehensive treatment technique.

With the help of medications, the patient is taken out of the state of drinking-bout, detoxification procedures are carried out, but the treatment of drug addiction is also psychotherapy, an analysis of motives that pushed a person to a bottle of alcohol, help in transition to sobriety, adaptation to healthy living conditions. Experienced narcologists and psychiatrists should work with the patient.

In the treatment of alcoholism, one cannot discount the factor of voluntariness: the realization that abuse of alcohol brings suffering and destroys fate is the basis for a complete cure.

Discover the Right Deals for the Company Now

Factoring represents a financial service system focused primarily on solving the working capital needs of the company, recovering its accounts receivable in advance, receiving the following advantages:

Financial

  • Liquidity

It offers a safe, reliable and continuous source of resources.

  • Financial situation

It allows the company to grow, using its own resources, causing a healthier financial situation in the company by improving asset turnover.

  • Flow leveler

When there are seasonal sales, extraordinary or occasional expenses, as well as take advantage of existing opportunities with suppliers.

  • Reciprocity

It does not require deposits or investments for reciprocity. It does not immobilize assets.

  • Monetary position

It promotes the best use of monetary assets, without generating liabilities or indebtedness, and there may be some fiscal benefit.

  • Revolvency

A factoring line is totally revolving, so it allows the company to obtain resources at any time.

  • Increase the ability to negotiate with suppliers.

Administrative

  • Credit and collections

The non-productive tasks of credit, administration and collection management to the factoring professionals, minimizes costs and avoids loss of time.

  • Eliminates controls

The factoring keeps the company informed about its customers and particular collection situations.

  • Opening new markets

Due to the close relationship that exists with the main buyers, the possibility of recommending new markets arises.

  • Productivity

Efficient the operating cycle of the company, since it does not require waiting until the collection date for a new purchase of raw materials.For the factoring invoices this is important.

  • Improves the relationship between customers. It benefits your image by delegating collections to professionals with large commercial relationships.

Disadvantages

  • High cost, specifically the interest rate applied is higher than the conventional commercial discount.
  • The factor may not accept some documents from your client or request for the operation the option with recourse.
  • Operations related to perishable and long-term products are excluded.
  • The client is subject to the criterion of the factor society to evaluate the risk of the different buyers.

Obligations of the factor company and the company

The factor company can reject operations that do not offer normal market guarantees. Regarding the other operations, its obligations are:

  • Collect debts.
  • Respect the expiration dates of the invoices to proceed with the collection.
  • Assume the risk of insolvency (depending on the case)

The obligations of the company are:

  • Give all the credits that originate their sales.
  • Notify your client of the signing of the contract with the factor company.
  • Facilitate the company factor report on: Sales, financial situation, accounting. Also the payments received directly from the clientele, obliging to transfer the funds thus obtained.
  • Giving back to the factor society the services rendered.
  • Do not intervene in collection management unless the factor company requests it.
  • Respond to the breach of the contracted obligations with its customers.

Great Perfections for the Truckers

Returns are an integral part of the business, but you must make sure that you do not limit them to the cost of the goods. A well-established process of reverse logistics will bring you a large income as a result. You will be able to better manage and re-integrate the returned materials, which will ensure you have a well-organized process, reducing waste and constant income from your products.

Do not let your goods grow old in cars of technical experts. Your products must be serviced as soon as possible, repaired and returned to stock. Our advanced technology and electronic returnable invoices will increase the transparency of your supply chain and will ensure that the returned items arrive at the destinations. The load boards for truckers edge are there now.

Make it easy for your customers to return and repair

End users appreciate companies that work for their benefit, and the introduction of an uninterrupted return system will bring them benefits and improve your performance. Reverse logistics can make the refund process easier for your customers and help you quickly replace products or reimburse the cost of their purchases. Our extensive after sales service portfolio can also help you reduce downtime in connection with the repair of your customers’ products.

Reliable work and quick response increase customer loyalty, which is the key to the successful development of your business.

The management of returns should not be complicated

Take on the possible responsibility and make it your competitive advantage, thanks to the safe and reliable management of returns. Backward logistics processes can increase your efficiency, keep customers and stimulate the growth of your business.

Practice shows: in an ordinary commodity warehouse or at a wholesale base, the costs of picking operations can be up to two thirds of all operational costs of the enterprise, both financial and temporary. These figures should be known and considered in the work of any person making decisions that affect the process of commodity circulation, be it the company manager, a logistics specialist or a freight forwarder. Therefore, it is not surprising that companies seeking to increase productivity, very often begin with the modernization of this sphere.

Many companies, faced with the need to improve profitability, often immediately begin with the introduction of expensive new technologies or equipment complexes. These measures by no means always give the desired result, and the funds invested in them do not pay off. Sometimes very simple organizational transformations make it possible to achieve improvements faster, with less cost and with greater effect than large investments in new technologies.

Essential Opportunities for Developing the Business

When deciding on financial issues, there are many self-employed and SMEs who show interest in two tools that can be of help. It deals with non-recourse factoring and with recourse, both short-term financing instruments that allow those interested to collect invoices in advance, avoiding the risk of insolvency on the part of their suppliers or customers.

In order to opt for one or another modality, it is convenient to take into account the service provided by each one of them. Knowing the policy of action of these financial tools can, in case of identifying specific needs in the treasury of the activity, optimize the requests made to the bank. For the Accounts receivable management services from Century Finance you will be able to have the best options.

The Small Words

In a very summarized way it is specified that factoring -without specifying in its modalities of with or without recourse, or international factoring-, is a financial tool that allows companies and freelancers to collect their invoices in advance to obtain alternative financing or obtain liquidity to cover possible expenses or to pay the payment of materials or services that are necessary to continue with their activity – it must be made clear that it has nothing to do with the ‘ confirming ‘ and that it is not bank loans. The agents that take part in a factoring process are:

Assignor: term used to designate the company or self-employed person who uses the factoring service.

Debtor: name assigned to the companies or self-employed who have to pay the invoice to the assignor.

Factor: bank, savings account or Financial Credit Establishment (EFC) that provides the factoring services to the transferor and, later, will collect the corresponding money directly from the transferor when it collects -factoring without notification- or through the debtor -factoring with notification -.

Since the financial institution that anticipates the money to the cedants assumes a significant risk of default, the payment made to these companies or freelancers is penalized with a commission that can amount to up to 3% of the assigned credit.

Once the concept of factoring has become clear, let’s see what the differences between non-recourse factoring and recourse factoring are. Depending on the agreement reached between the transferor and the factor, we will be in either case.

What is factoring with recourse

This type of factoring considers the assignor liable in case the debtor does not pay the invoice. Let’s give a practical example to understand it better.

Raquel, a businesswoman dedicated to the upholstery of armchairs, needs to buy fabrics worth 5,000 euros from one of her suppliers to deal with a last-minute request. Their funds are not so high as to be able to manage this payment, since they have not yet charged a bill of 6,000 euros that they issued to a hotel that needed their services because they were remodeling their furniture.

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