Factoring

Activity/organization/distribution structure

Factoring is an invoice financing and receivables management solution for all businesses selling B2B, regardless of their size or industry. Designed to meet three fundamental customer needs, these services enable customers to:

• obtain finance by transferring invoices to the factor and receiving payment early in return;
• shield themselves against non-payment by customers through insolvency (default) cover;
• avoid using internal resources to chase debts and match payments to invoices by outsourcing this task to the factor.

This principle is simple: the company assigns its receivables to the factor via a subrogation or Dailly agreement, whereby the factor becomes the owner of the receivables. In return, the factor pays some or all of the invoices in advance of their normal payment date and collects payment from the debtor. Factoring offers a modular solution, as businesses can choose to factor receivables from a single customer or multiple customers, or to use only some of the services on offer.

Under sales ledger management solutions, for instance, the factor may authorize the company to oversee some or all of the services on its behalf (recovery, collection).

• Crédit Mutuel Factoring sells its solutions (factoring and invoice financing) on behalf of the Crédit Mutuel and CIC networks;
• Factofrance sells its products directly, via a dedicated sales team and a network of business introducers such as credit insurance brokers, financial advisors, accountants, investment funds, etc.

In Germany, factoring activities are carried out by TARGOBANK under the Targo Commercial Finance brand.