Financing by factoring
Besides bank loans, factoring is an important form of short-term corporate financing in Germany. It guarantees permanent liquidity and provides wider action and planning leeway precisely to companies that do not have a comfortable equity base.
What is a typical situation for Factoring?
- An inadequate current account overdraft line
- Protracted payment targets
- Customers stalling payments, or
- A complete payment default
have negative effects on liquidity. In that situation factoring may be the right financial solution:
Factoring firms buy up payables and
- immediately pay the invoice amount the next day – no waiting until the customer pays.
- bear the risk of default by 100 percent – you always receive the full invoice amount
- if asked to, take over credit control and dunning
Even with good credit-worthiness factoring can pay off:
- The rating with the bank improves due to the reduction in liabilities
- Financial leeway in order to recruit customers with protracted payment deadlines
- Financial leeway in order to quickly and flexibly purchase goods or vehicles
- Sub-contractors / carriers can be paid faster and in that way won over for the company
What solutions does the SCHUNCK GROUP offer?
The SCHUNCK GROUP reviews existing insurance contracts and, on the basis of an individualised risk analysis, generates an insurance solution specially adapted to the needs of the company. The solution combines the best on the market and guarantees an optimum of security through cooperation with selected national and international credit insurers with very good credit standing.
Advantages of SCHUNCK factoring expertise
- Complete or selective factoring
- No exclusion of startups and small firms
- Also for small companies with low turnover
- Naturally also as a covert procedure – your customer continues to pay to your account
- Almost all sectors
- Assumption of 100 percent of the default risk
The SCHUNCK GROUP runs, especially on the subjects of credit insurance, factoring and sureties, its own competence centre where banking and insurance experts adapt solutions to current developments on an ongoing Basis.