This solution reduces manual work through automated calculation, disbursement, accrual, and invoicing of interest and commission. It allows your customers to track and report easily, making factoring business management more transparent and efficient.
Recourse factoring distinguishes itself from non-recourse factoring by placing the onus on the client to repurchase the invoices if the debtor defaults on payment. This shared risk model allows for more flexible terms and lower factoring fees, making it an attractive option for businesses looking to optimize their cash flow without incurring exorbitant costs.
Non-recourse factoring distinguishes itself by transferring the credit risk of non-payment from the client (seller of invoices) to the factor (financing company). In essence, once the factor purchases the receivables, they assume the responsibility for collecting payment. If the debtor defaults, the client is not liable for the repayment. This model gives businesses higher financial security, allowing them to offload credit risk and focus on their core operations.
Reverse factoring, also known as supply chain finance, is a strategic financial solution that enables businesses to optimize cash flow by improving the payment terms between buyers and suppliers. In reverse factoring, a financing entity, often a bank or a factor, facilitates early payments to suppliers on behalf of the buyer. This process allows suppliers to receive payment sooner than the agreed-upon payment terms, enhancing their cash flow, while the buyer extends their payment terms, effectively optimizing working capital.
Loan (line of credit)
In the realm of factoring, a loan or credit line refers to a financing arrangement where a factoring company extends a line of credit to its clients based on their accounts receivable. This credit line allows clients to access funds against their outstanding invoices, providing them with immediate working capital to meet business needs while waiting for customer payment. It bridges the gap between invoice issuance and payment receipt, empowering businesses with greater financial flexibility.
Empower your customer business processes
- Minimised manual work: Automated calculation, accrual, and invoicing of interest and commission, funds disbursement to customers
- Easy tracking and reporting: All customer-related data and scanned documents are in one place
- Additional enhancements: Using document management and CRM with contact-address details
- Reduced risk of data loss and human errors thanks to system alerts
- Improved customer satisfaction through quick data management and customer service: Customer receives money quickly and easily
- Easily customizable to meet specific customer business needs
Become a partner today and enjoy all these benefits
– Earn up to 50% margin.
– Get access to tried-and-tested vertical solutions, which might be offered as cloud, SaaS, or on-prem.
– Strengthen your portfolio and broaden the services you offer to your customers.
– Receive the leads we generate at SOFT4.
– Receive sales, functional, and technical training.
– A partner manager who will always be there for you.
More than 10 years of experience
Implementing projects at 100% success rate and capturing new opportunities in software development rapidly is what the SOFT4 team is about. As Bill Gates said about Microsoft, we can say the same about SOFT4: ‘Our success has really been based on partnerships from the very beginning’. That is why we constantly seek to grow our partner network and offer them significant sales margins.