Advantages of Factoring

BNP Paribas Factoring solutions have a wide variety of different and exclusive advantages from which you can benefit depending on your business needs, models and the solution we implement.

  • working capital optimization by reduction of your DSO (Days Sales Outstanding), with possible off balance sheet optimization effect
  • cash-flow optimization and better forecasting
  • Focus on core business operations
  • transformation of  fixed costs into variable costs
  • efficiency in sourcing new customers using up-to date credit information and experience
  • credit protection against bad-debts, debtor insolvency and losses
  • high liquidity with increasing bargaining power and discounts from your suppliers

Difference between bank loan and factoring:

  • Factoring is an Asset Based Lending (“ABL”) product.
  • Factoring is a flexible facility, closely linked to the turnover assigned and to expenses engaged, that an be utilized, depending on the client´s needs.
  • Factoring can influence the balance sheet ratios of a client in a positive way (liquidity and solvency for example).
  • Factoring products provide better efficiency in terms of pricing, service time, operational workload, etc. in short-term financing.
  • Credit-insurance service with 100% risk cover for protection against bad-debts
  • Tailor-made solutions are possible depending on your needs
  • Higher credit facilities are possible when compared with bank loans, as they are based on the current value of the sales ledger and not on historic management information.
  • Thanks to our receivable management, factors has not only direct contact with the client, but also with the debtors

You can benefit from more than these advantages with the privileged client-centric services of BNP Paribas Factoring Group. You can contact with us via contact button in our global and local websites or find contact details in our international presence page.

Risk mitigation on several buyers instead of one client.