Factoring is an important form of short-term corporate financing in Germany alongside bank loans. It guarantees permanent liquidity and allows companies that do not have a comfortable equity base greater freedom of action and planning.
What is a typical situation for factoring?
- An insufficient current account line
- Long payment terms
- Sluggish payment by customers or
- A total loss of receivables
have a negative impact on liquidity. In this situation, factoring can be the right financing solution:
Factoring companies purchase receivables and
- Pay the invoice amount immediately the next day – no waiting for the customer to pay
- Bear the default risk 100 percent – you always receive the full invoice amount
- Take over the accounts receivable management/ arrears billing if desired
Factoring can pay off even with a good credit rating:
- The rating at the bank improves due to balance sheet contraction
- Financial leeway to win customers with long payment terms
- Financial leeway to purchase goods or vehicles, for example, quickly and flexibly
- Subcontractors/carriers can be paid more quickly and thus bind them to the company
What solutions does the SCHUNCK GROUP offer?
The SCHUNCK GROUP reviews existing insurance contracts and, based on an individual risk analysis, creates an insurance solution that is specially tailored to the needs of the company. The solution combines the best on the market and guarantees optimum security through cooperation with selected national and international credit insurers with excellent credit ratings.
Advantages of SCHUNCK factoring expertise
- Total or selective factoring
- No exclusion of start-ups and small firms
- Also for small companies with low turnover
- Of course, also silently – your customer continues paying into your account
- Almost all industries
- 100 percent assumption of the bad debt risk
The SCHUNCK GROUP operates its own Competence Center especially for credit insurance, factoring and guarantees, where banking and insurance experts continuously adapt the solutions to current developments.