Factoring

Factoring has become an increasingly popular form of financing, shifting SME lending from non-secured lending into receivables finance and factoring

Factoring from Banqsoft covers administrative, financial and portfolio factoring, as well as invoice purchasing.

The solution supports multi-currency factoring, automated credit-score and onboarding process, online uploading of invoices, payments, reminders and debt collection, dispute handling, fee calculation and settlement. A reporting gateway exposing both standard and customer-specific reports and dashboards.

Banqsoft also offers self-service solutions for creditors and debtors, as well as front components and web-services for customers wanting to customize their own factoring portals.

 

Factoring

Means that the company sells or lends invoices to reduce the gap between supplier invoices and customer invoices to achieve better liquidity and reduced credit risk.

 

Invoice purchasing

Is similar financial service where the company sells invoices against a commission that covers administration, risk taking and financing. The amount corresponding to the invoices sold will be deducted from the company's balance sheet, thus achieving better liquidity and key figures.

Administrative factoring

With administrative factoring, the factor performs the process of reminding, often also the issuing of the original invoice. The factor pays the creditor when the debtor pays and subtracts his fees and commissions. Disputable and non-collectable claims are rejected by the factor versus the creditor.


Financial factoring

Is like administrative factoring, but where the factor grants creditor a loan as a function of the receivable amount, either as a pay-out of a new tranche, or as increased limit on a credit. When the debtor pays, the credited amount is subtracted, including fees and commission before the final amount is credited the creditor. Disputable and non-collectable claims are rejected by the factor versus the creditor, and any credited amount reversed.


Portfolio factoring

The factor purchases the total or part of the creditors’ receivables at an agreed price, and at own risk. There are some variants of constructions, but the rule is that factor takes the risk, sometimes with exemption of disputes.