factris invoice financing factoring

B2B factoring

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.

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What is B2B factoring?

B2B factoring is an alternative financing method for companies that do a lot of business with other companies. As mentioned, these companies often take a long time to pay invoices, which can have unpleasant consequences for you as a company. For instance, as a company, you can get tangled up with working capital, making it difficult to meet day-to-day financial obligations. Moreover, in such a situation, you do not have sufficient financial resources to make (large) investments and continue to grow your business.

Factoring offers the solution for this. B2B factoring ensures that, as a company, you say goodbye to waiting for other companies to pay you, so you no longer have to worry about your financial situation. Instead, we deposit the relevant amount into your account within 24 hours. Wondering how? Then read on to find out how B2B factoring works at Factris.

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:

  • The volume of monthly receivables you want to invoice. Volume plays a big role in calculating factoring fees: larger monthly factoring amounts mean lower fees. Many factoring companies offer volume discounts.
  • The average size of each invoice you want to invoice.
  •  Your industry.
  • The creditworthiness of your customers.
  • The time it takes your customers to pay.
  • Factoring fees are calculated to put more money in your account – where it can help the most. More importantly, factoring is a relationship designed to revitalise your business. In our opinion, the services you get from a factoring company are more than proportionate to the cost.
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