Factoring

Credit Insurance

Liquidity and Security through Factoring

Factoring is a method of financing where you sell your trade accounts receivable on a regular basis to a factoring company. The sale is based on a legal assignment, as is also found with the assignment loans offered by the banks.

	What is the benefit of factoring? As a supplier, you continue to invoice your customers as before, but you no longer need to wait to receive payment. The factoring company pays 100% of the		The payment terms remain the same. You issue the invoices yourself. The invoice data are sent to the factoring company, by electronic data interchange if possible. You are kept constantly up-to-date on all payments and entries.
	invoice amountwithin agreed limits for each customer, up to 80% of which is paid immediately after the invoice has been issued and the remainder when the debtor has paid. If the customer does not pay, you receive the outstanding amount no later than 120 days after it is due, irrespective of			The administrative workload is reduced. Credit investigations, reminders and collection are all transferred to the factoring company. How can you calculate the benefit of factoring? By providing a fast and reliable flow of liquidity, factoring allows you to make the most of purchasing privileges such
	whether insolvency proceedings have been instigated against the customer or not.The factoring company is responsible for collection and prosecution and also bears the risk of non-payment. Does it involve any changes for your customers? As far as your customers are concerned, the only change is in the payee; otherwise everything remains the same. Your customers continue to discuss matters concerning the product or service directly with you.		as discounts for cash payment and rebates. You can concentrate on your core business. Your administrative workload is reduced.and there is no longer the risk of non-payment. The factoring charge is calculated individually in each case and is usually between 0.5 and 2.0% of turnover. Interest at customary bank rates is charged on the advances.

A personal discussion would allow us to provide you with a competent analysis of your requirements.

Schepers & Partner AG, Bachtelstrasse 5, CH-8400 Winterthur, Tel. +41 52 223 10 50 info@schepers.ch