How the facility works exactly Dresden, 01.10.2012 – in Germany, more than 17,000 companies use factoring to secure the liquidity. After a record achieved factoring volume 2011 amounting to EUR 157 billion the total turnover of the companies in the Association of factoring increased 2012 in the first half of the year to around 78 billion euros, an increase of 2.7 percent. “As a flexible financing instrument factoring has become established in the German Mittelstand”, confirms Matthias Bommer, Managing Director of Elbe-factoring GmbH. In everyday life, factoring works as follows: the entrepreneur is as usual supplied performance the invoice to its customer. The Elbe factoring will get a copy of it. By selling receivables to the factor, the contractor gets paid immediately around 80 percent of the amount. Once the invoice has been paid, the factoring customer receives the remaining 20 percent less fees. One advantage of the service is in the percentages of the total amount of the Bill, because that factoring users is liquid and can Minimize the amount owed.
The operator has the possibility to pay own debt on time and with a discount and in addition offer longer payment terms to its customers. The introduction of factoring in the company after signature of the contract begins integration of factoring in the day-to-day business. If an assignment of receivables the Bank (global assignment) should exist, the Elbe factoring requested a share. At the same time, the factoring customer shall submit current billing and customer data as well as the active customer master data with the desired limit increases. “Matthias Bommer explains: these limits refer to the amount of the claims, which are purchased, and at the same time are covered by credit insurance against failure.” The data are fed by Elbe factoring factoring system and limits applied for the insurance. The customer now every future Bill equips with a note that it is ceded to the Elbe-factoring and all payments to the new bank account payable Just pay the accounts receivable a different account number, change for them not”, said the expert.