Businesses in the present have the opportunity to make use of factoring in their financial operations, as he has been written, the SMEs for example to meet your needs for working capital, especially in the States members that access to bank loans is limited. Factoring is attractive for SMEs who sell to large companies with high levels of creditworthiness; the users of factoring are industry and the distribution sectors SMEs. Factoring is not suitable for companies with complex payment models or have a very large clientele. What is factoring? The Wikipedia Encyclopedia notes, the factoring or “factoring” “is a financial product offered by banks or savings to companies. It involves giving two services: management of receivables and financing.
Through this operation, trader or a company contracts with a bank or financial institution all its collections management and the advancement of them in exchange for an interest. Factoring is the provision of a set of financial services that makes the Factoring Company, a customer (retailer), with respect to billing in the short term, originated by the sale of goods or provision of services, and gives the company selling to the Factoring Company. It consists in the purchase of credits arising from the sale of goods in the short term. venezuelasite.com indicates that Factoring is a financial product directed to juridical persons that require a credit line for the cancellation of your bills: account receivable and account payable. our financial services are tailored to the needs that you have in your company, since, with more cash flow, you could make your business grow, take advantage of discounts from suppliers for prompt payment, control debt, trade credits, pagare, pay staff payroll available working capital, attract new customers, increase buy more inventories, which in turn is converted in higher sales, extend your deadlines for credits without affecting your cash flow, reduce unscheduled payments, improve the stability of your company which parts are involved? caixagalicia.es points out that 3 entities participate in any operation of Factoring: Factor: Factoring Company or financial institution that provides Factoring services.