What becomes of a companys relations with its bank after a Trade receivables Finance agreement is signed?
The A.S.F.’s answer: A company uses a factor’s financing to broaden their sources of financing beyond traditional banking products. Part of the financing that the factor offers can be carried out in the form of promissory notes. The company can therefore maintain a discount-adjusted amount outstanding with their banking partners, who willingly accept mobilizing the factor’s signature, a first class instrument, under attractive conditions. In many cases, the banker plays the role of consultant, directing his client to a factor himself to allow the client to benefit from all the services on offer in guarantees and management. Relations with the bank are maintained and even strengthened in this way. The business lines prove to be complementary while keeping their own specific characteristics. In conclusion, Trade receivables Finance allows the company to diversify its sources of financing.
