How do we assist you with factoring?

Define preferences

We always start with an introductory meeting in which we discuss the following points:

• The nature of your business: Is factoring suitable for your company?
• The quality of your customers: Are your customers creditworthy enough?
• The relationship with your other financiers: How will they react to your decision to start with factoring?
• your financing needs. Are there sufficient outstanding receivables that qualify for factoring?

During the conversation, we will also answer all your questions and explore which forms of factoring (such as Recourse Factoring, American Style Factoring, invoice discounting, etc.) and which factoring company best suit your situation. You will gain insight into the costs and terms associated with factoring. If you agree with this, we will move on to the next step.

Approval by the factor

Factoring companies are generally less strict than banks when it comes to accepting a financing application. However, they also conduct a thorough investigation into your company's activities, the invoicing process, the payment behavior of your customers, and your financial situation. Therefore, it is important to compile as complete a file as possible.

Documentation that is usually requested:

• annual accounts
• accounts receivable list with desired financing limit
• current outstanding customer and supplier positions
• payment histories
• Documents related to the billing process (such as purchase orders)
• ...

Nextfactor handles the application and submits it; any additional questions and clarifications will be addressed by Nextfactor. Of course, you will be involved in this process. In some cases, a meeting between your company and the factoring company may be desirable.

Contract and startup

After discussing and approving any deviations from the terms, let's draft a contract for signing.

Then your company will receive all the instructions for starting the factoring process:

• Adjusting your invoices with the necessary information from the factoring company
• Informing your customers about the new payment procedure
• Connect with the portal of the factoring company
• The first "assignment" (transfer of invoices) and the first financing
• The accounting treatment of factoring
• Introduction of the account manager of the factoring company.

From this moment on, you will have direct contact with the factoring company for all daily aspects of the collaboration. We will be monitoring the collaboration from the sidelines. If you have any questions, adjustments, or issues, you can always reach out to Nextfactor.

In most cases, Nextfactor is reimbursed by the factoring company. If this is not the case, we will make separate arrangements with you.