Factoring is intended for all types of companies, from professionals to corporate customers
What is factoring?
the management of entrusted receivables, i.e., you go as far as dunning, recovery and collection of receivables;
security against insolvency, and
financing within 24 hrs of receivables sold under a factoring contract.
The factoring market is a real economic reality given that in 2012 it represented more than 180 billion euros in assigned receivables on the French market. Crédit Agricole Leasing & Factoring has for several years been in a leading position with a market share of slightly over 20%.
Who is factoring for?
Factoring is intended for all types of companies, from professionals to corporate customers. Our role is to support these enterprises at every stage in their life cycle, from creation to very strong expansion, or even during sale transactions both in France and abroad.
We are involved in a wide rage of sectors, including transportation, industry, business, service and others
How does factoring actually work?
Factoring works in a very simple and flexible way. When you issue invoices upon delivering your services, you insert a reference to subrogation which will indicate to your customer that there is a third party responsible for managing your receivables. Once this is done, you send these receivables to us via the internet; the receivables will be credited to your account, and will make you eligible for financing. The eligibility for financing will generally be up to 90%, tax inclusive, of the invoice sold to us.
What are the advantages of factoring?
The first advantage of factoring is the provision of cash with flexible and uncapped use. The factoring technique makes it possible to fully meet your need for growth.
The second main advantage of factoring is the outsourcing of the management of your account receivables, a great relief for the company. You free yourself from the sometimes painful administrative issues associated with dunning and collection.
The third and not least advantage is the security offered under factoring contracts against your customers' insolvency.
Bear in mind that 25% of bankruptcies in France are due to an outstanding payment.
How much does factoring cost?
Costs arise from two main sources. The first source is what is called factoring commission. The factoring commission is generally a percentage of the turnover you entrust to us.
The second main source is what is called financing commission. The financing commission, like an overdraft, will correspond to the charges that you will pay on the cash advanced by Crédit Agricole Leasing & Factoring, on the basis of the invoices sold.