Factoring
Factoring is a working capital funding tool that is open to any company working in B2B and having a need to transform its account receivables (domestic and international) into cash.
Factoring, first short-term financing tool for all businesses working in a B2B environment, whatever their size, sector of activity or their life cycle.
The establishment of a contract requires defining the objectives, knowing the different market players and their specificities and controlling the various negotiating levers to optimize the financing capacity and tariff conditions.
The team at BFR Expertise & Solutions brings together all their experiences to build a lasting relationship with the selected Factoring company.
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Credit Insurance
Credit insurance protects companies against the risk of default payment by allowing them to be covered and compensated for non-payment of receivables, equally for the domestic and export market.
Establishing a credit insurance is a strategic choice that must be part of a comprehensive approach for credit management.
Credit insurance can be a real lever to finance the receivables.
BFR Expertise & Solutions :
- Analyses your needs and defines the best solution,
- Negotiates and optimizes contractual and tariff clauses,
- Pilots and manages daily contracts with privileged access to dedicated services within the insurance industry.
Reverse Factoring
Reverse Factoring, formerly only attributed to ”major players”, has democratised and now attracts buyers from SMEs/SMIs.
This technique allows a Factor to charge a supplier’s due invoices at a discount.
The buyer improves:
- Its supplier relationship with a collaborative approach
- Margin, benefitting from a part of the discount collected by the Factor
- Its cash position, when selecting a payment beyond the original deadline.
The provider can:
- increase its sales flow freely in assets
- improve its cash position
- off balanced its receivables.
A reverse Factoring program is unique and built according to the expectations and needs of each stakeholder.
BFR Expertise & Solutions has developed a real expertise by negotiating and implementing reverse factoring programmes.
Our team supports you by analysing your needs throughout the entire life-cycle of the programme.
Stock Financing
A company’s stocks (raw materials, finished products) are assets that can be valued and funded.
There are different formulas for financing stock that can be put into place by certain factoring companies, banks or even by innovative and niche players who provide concrete and competitive solutions.
Stock Financing is relevant for SMEs/SMIs, especially for those who experience a strong growth, a seasonal activity or a long production cycle, resulting in a need for a significant working capital requirements.
BFR Expertise & Solutions has developed partnerships with major market players to address wider issues.
Leasing
Leasing can finance a new investment of new/used equipment to up to 100% (VAT included) without affecting the cash flow of the company.
The various proposed formulas in the market depend on what is being financed and the financing strategy.
Equipment previously acquired by the company can be leverage to mobilize cash. It is possible in some cases to use sale and leaseback transactions on recently acquired, or older equipment that still has an economic value.
The applied value could be up to 100% of the purchase value (VAT included).
BFR Expertise & Solutions supports you in the search and selection of the best possible solution:
- Leasing
- Financial leasing
- Flexible financial leasing
Over periods of 24-84 months for standard or specific assets.
Bonding
The need for bonding arises from lead-time offset obligations (Holdbacks, advanced payment security, vendor guarantees…) or regulatory obligations (Temporary work, ICPE/Environmental deposits …).
Replacing bonds delivered by a bank with a bonds issued by a credit insurer.
BFR Expertise & Solutions supports you in:
- Auditing your needs and defining the best solution,
- Negotiating and optimizing contractual and tariff clauses,
- Building client relationships and accompaniment during renegotiations.
Our clients
Here are some examples of customer cases
Activity: sawmill
Turnover: € 35 million
Context: company heavily in debt following an ambitious industrial redeployment.
Solutions :
Factoring + credit insurance
Mobilization of stock
Global funding: € 7 million, including € 0.7 million in inventory
Activity: Aeronautical subcontractor
Turnover: 250 M €
Context: strong growth through a policy of external growth accompanied by a fund.
Solutions :
Conduct of the factors call for tenders covering all parameters
Improvement of the financing ratio (97%) and optimization of the conditions
Global funding: € 50 million
Activity: World leader in bakery equipment
Turnover: 50 M €
Context: maintain the confidentiality of the factor contract (conciliation period) and secure supplier relationships.
Solutions :
Change of factor to ensure confidentiality.
Obtaining a supplier guarantee line (€ 1 million).
Global funding: € 9 million
Activity: European leader in aeraulics
Turnover: 120 M €
Context: group built by external growth and suffering froman appreciation of credit insurers in decline.
Solutions :
Implementation factor and credit insurance on the whole group.
Place a guarantee envelope to regain supplier credit (€ 2 million).
Global funding: € 22 million
Activity: Group catering for companies
Turnover: € 30 M
Context: cash flow under pressure due to 100% growth in turnover for 3 years.
Solutions :
Implementation of a confidential factor contract within 15 days.
Global funding: € 4.5 million
Activity: Transport group with strong growth by acquisition
Turnover: € 150 M
Context: develop credit insurance and factoring contracts (partial) to adapt to the new group configuration (external growth).
Solutions :
Renegotiation with the factors holding and improvement in the cost and the level of finance (reduction of the holdbacks + delay in
de-financing)
Renegotiation and extension of the credit insurance program.
Global funding: € 6 million
Our Clients meet success
