When, as a business, you provide products or services to companies or individuals, you do not want to have to wait long for payment of the invoice. Yet many entrepreneurs run into the fact that invoices are often paid late, too late or sometimes not at all. Especially business-to-business (B2B) transactions often take a long time, which can put you in financially awkward situations. B2B factoring offers the solution to this. But what exactly is B2B factoring, how does it work and what benefits does it bring? We cover it in this blog.
What is B2B factoring?
How does B2B factoring work?
B2B factoring is a financing method that is becoming increasingly popular with many entrepreneurs. This way of financing revolves around selling invoices. When you sell your B2B invoice to Factris, we advance the amount to you. This way, you are no longer dependent on the customer’s legal payment term, but have the amount at your disposal within 24 hours.
So you will have sufficient money available in time to put into working capital or invest in the company. Moreover: when you use B2B factoring with Factris and sell your invoice to us, we not only take over the invoice, but you will automatically outsource your debtor management. So we make sure that the original B2B customer will make the payment, where by you do not have to worry about the financial settlement with the company.
The benefits of B2B factoring
The benefits of factoring:
Working capital in an instant. Stop waiting for unpaid invoices, grow your business by turning debtors into working capital.
Collection of receivables so you can focus on your business and not on who still owes you money.
Credit insurance for your financial security. It gives peace of mind to know that with factoring you are fully insured against insolvency and non-payment.
Credit management makes sure your invoices get paid. This leaves your hands free to work on growing your business.
Risk assessment that lets you know what to expect from a transaction, giving you even more peace of mind.
Monitoring buyers so that you can work with your best customers on the road to even greater success.
Personal support from a human and not a bot. Crisp answers and advice from an experienced account manager, at no extra cost.
Finance Automation for Business (“FAB”), our one-stop platform that makes finance quick and easy. Here you upload invoices, track payments, and receive same-day capital.
Flexible products tailored to your business needs. Choose what you need, forget what you don’t.
What does B2B factoring cost?
B2B factoring is, in many cases, the solution for financing your business. Yet it is also important to know the cost of factoring, because as with any business lending, there are therefore costs associated with factoring. At Factris, depending on a number of factors, these costs can be as high as 3% of the total value of the invoice.
Factoring costs are determined based on the following factors: