Standard factoring methods rely on conclusive and, if possible, written evidence that a receivable has indeed arisen. Each operation – assignment of the receivable, provision of the financing, payment by the customer – must then be accounted for by both the factoring company and the client.
In large companies having many invoices, documenting of assigned receivables, double accounting, pairing up of payments and so on makes the process more demanding and obstruct the smooth factoring financing.
To avoid this, it is possible to simplify the procedure for companies that are able to guarantee processes required by the factoring company. Factoring financing may be set up so that the client of the factoring company itself manages the receivables that the factoring company is financing.
In practice, the client itself, based on the authorization by the factoring company, maintains factoring records for individual receivables and shares only aggregate figures with the factoring company.
The factoring company then conducts random site audits to check on compliance with the processes agreed in advance. We provide the client with this prearranged and paid service in the form of site audits usually twice a year.
The basic prerequisite for this type of factoring is very high creditworthiness of the client and the sufficient capacity and reliability of its accounting department.
For prompt action, please fill in and submit the entry questionnaire by e-mail to firstname.lastname@example.org or call us today!