Omnicredit was created to support Microenterprises and Small Enterprises, that are using our alternative financing solutions due to lack of liquidity.
Factoring financing is a simple solution for a cash flow improvement, through which a company can quickly turn its issued invoices with term collection into immediate liquidity.
Frequently, in many industries, the factoring service allows companies to quickly cash in on provided services, rather than waiting for 30, 60, or even 90 days.
Many companies rely on alternative factoring financing services to access the working capital needed for their business development.
The most common industries that are using factoring services are:
Factoring is suitable for companies working B2B and that issue invoices for the provided services / delivered goods.
It is a financing alternative that allows companies to collect faster money for their provided services, without waiting until the due date.
This financing method refers to the assignment of invoices that are still in term and have a maturity up to 120 days from issuance.
The process goes like this: the Factor (a bank or an IFN) will “buy” your invoice, you, as a company / PFA / II (you will be called adherent in this transaction) will collect the price (its value) before the due date, and your client (who will be called the assigned debtor in this transaction) will be notified that at the due date will have to pay the invoice in the factor’s account.
The Factor will do this transaction for a commission (usually a certain percentage of the invoice value that he settles in advance).
You can get a quick financing by following 3 simple steps:
In case of approval resolution obtained after the internal analysis, the factoring contract will be signed and the assignment notification will be sent to the assigned debtor.
After the approval and signing of the contracts, the money will be transferred to adherent’s bank account.
At maturity, the assigned debtor will proceed the payment in Omnicredit account based on the assignment notification sent to them.
Most often companies choose factoring services when they have a major time difference between the suppliers payment and the collection of invoices issued to customers.
It is the process by which you transfer your receivables and you can collect right away the money for your bills.
With Omnicredit services you can quickly get cash for:
No! This service refers to the invoices assignment that are still in term and have a maturity up to 120 days from issuance.
No! This financing service is not a debt and will not affect your credit score.
The approval process for this service is quite simple and flexible, compared to the lengthy approval processes often associated with bank loans. Also, unlike a bank loan, factoring does not create an additional debt for the company.
It is very possible that your clients already benefit from this service. This financing alternative is increasingly accepted and known in the business world. The fact that they offer you payment terms of 60-90 days for your bills and not immediate payment, it might suggest you the same questions about them.
Absolutely! Because this method focuses more on analyzing your clients and it is a great way for a start-up business to increase its working capital. As long as you have an issued invoice for the goods or services provided for another company, you can finance your business through factoring.
Of course, there are companies willing to finance this type of invoices as well.
In this type of factoring, the adherent remains in payment solidarity with the invoices payment. If the debtor is unable to pay the invoiced amount, the factor has the right to regress on the adherent. The factor can exercise his right of recourse the day after the expiration of the grace period offered to the debtor. The right of recourse does not eliminate the right of the factor to continue to collect from the debtor, the claim still being in factor patrimony.
In this type of factoring, the risk of the debtor’s non-payment is transferred to the factor, in case of non-payment it no longer has the right of recourse on the adherent.
The assignment of the debt cannot be prohibited according to Civil Code, and if you have this clause in the contract, it is null:
– Article 1.570. Inalienability clause
– Article 1.573. Form of assignment
– Article 1.578. Communication and acceptance of the assignment
According to Art. 1,578 of the Civil Code – its consent is NOT required and the proof of notification is sufficient.
The average cost is about 3% per month of the invoice/instrument value, but it depends on the financing period, the requested amount and the analysis result.
This financing service has the following advantages: