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FACTORING AND SUPPLY CHAIN FINANCE

As an independent credit broker, Green Gap helps clients analyze solutions to optimize their working capital. We also identify the Financial Institutions and Factoring Companies best suited to meet their specific needs.

 

What are the main advantages of Factoring?

Factoring represents an effective solution for outsourced credit management and for managing a company's working capital.

Increased cash flow

With factoring (pro soluto credit assignment), you monetize your receivables by anticipating their collection and reducing your bank debt.

Elimination of credit risk

By assigning receivables without recourse, you eliminate credit risk, collect your invoices immediately, have a reliable and planned cash flow, minimize the number of days you have to collect from customers, reduce the use of bank financing, and improve your balance sheet ratios.

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SUPPLY CHAIN FINANCE

It offers various solutions to support the company's supply chain: it optimizes relationships with suppliers by providing them with a privileged line of credit and provides the company's Buyer with a powerful tool for negotiating payment terms and discounts.

  • Maturity Factoring

  • Reverse Factoring

  • Confirming

MATURITY FACTORING

Through credit assignment, the supplier obtains payment of invoices on a pre-established and certain date. For the supplier, it ensures the certainty of receiving payment on the agreed-upon due date. Thanks to credit assignment, the supplier can also anticipate the collection of the consideration, maximizing its cash flow. For the customer: in addition to facilitating negotiation of payment terms with the supplier, it allows the supplier to request a payment extension from the factor beyond the established due date, optimizing cash outflows.

REVERSE FACTORING

Thanks to an agreement with a factoring company, it is a tool through which a company facilitates its suppliers' access to credit, allowing them to assign their receivables on favorable terms. Reverse factoring is the ideal tool for buyers to support their strategic suppliers and obtain more favorable payment terms for the company. If requested, the factor can also grant the company a payment extension, with an additional benefit in terms of passive cash flow.

CONFIRMING

Suitable for large businesses, and unlike reverse factoring, it does not necessarily involve the assignment of receivables. Confirming is based on an agreement between a high-ranking company and a factor, who arranges for the client's suppliers to be paid on time based on a payment mandate. For the supplier: if needed, they can anticipate the collection of invoices by assigning the related receivables, maximizing their active cash flow. For the client: if needed, they can request a payment extension from the factor, improving their passive cash flow.