Does factoring meet companies’ cash flow needs, and nothing else?
Most people believe that companies only use factoring when they require funds. This is not true, as factoring offers companies a complete range of services. It is a high-performance technique for customer account management. In one out of four business failures, outstanding payments is usually the root cause. Factoring helps companies protect themselves against customer risk. The factor works to prevent this and encourage them to “achieve a good turnover”. But in the case of a customer’s insolvency, the factor undertakes to recover the money owed. Customers are followed up systematically and as a result of their efficiency, factors succeed in reducing by half the number of late payments recorded by companies. Financing debt is not the only service factors offer companies. Factoring is a high-performance mechanism for customer account management.
