Factoring for your business

Factoring for companies

What is factoring?

Factoring is a form of financing that enables companies to improve their liquidity and manage their working capital efficiently. A company sells its outstanding receivables to a factoring provider, who immediately pays out most of the invoice amount. This enables a rapid injection of liquidity without having to wait for customers to pay.

Factoring allows you to avoid waiting for your customers' payments and access liquidity more quickly. In addition, the factoring provider takes on the default risk of your customers. Unlike an overdraft facility, where the bank only uses a fraction of the outstanding receivables to underwrite the credit line, with factoring you can receive up to 100 per cent of the value of your outstanding receivables.

Advantages of factoring with Teylor

• Fast and digital process: Our digital processes allow us to process factoring applications quickly and efficiently, giving you immediate access to liquidity. Your outstanding invoices are paid within 24 hours, which increases financial flexibility and planning consistency.
• Flexible financing options: Our factoring offering is flexible and can be customised to meet the needs of your business. Regardless of industry or company size, we offer customised solutions to meet your specific financial requirements.
• Improved liquidity: By selling your receivables immediately, you improve your liquidity and can manage your working capital more efficiently. This enables you to settle short-term liabilities, finance growth projects, and keep operational processes running smoothly.
• Protection against credit default: Once you have sold your receivables, the factoring provider bears the risk of repayment. This offers you additional security and protects your company from the financial impact of credit defaults by your customers.
• Plannable liquidity: Teylor factoring increases your financial flexibility and protects your credit lines. With additional liquidity, you can deliver new orders, take advantage of discounts when purchasing goods or services, and grow your company sustainably.
• Flexible payment terms for your customers: You can set individual payment terms for your customers and gain a competitive advantage. Flexible payment terms improve customer satisfaction and strengthen long-term business relations.
• Strengthening supplier relations: As you have sufficient liquidity, you can pay your invoices on time and reliably. This enables you to negotiate better purchasing conditions and benefit from possible discounts, which improves your margins.
• Better creditworthiness in credit negotiations: Factoring does not increase your debt to equity ratio. The higher equity ratio and cash liquidity improve your credit rating. This gives you better conditions in credit negotiations and expands your financing options.
• Free up human resources: The factoring provider takes over the dunning process and debtor management. This reduces your costs and enables your employees to concentrate on their core tasks. This leads to a more efficient use of your human resources and improved internal organisation.
• Financing Expertise: Our experts have extensive experience in factoring and know the specific challenges and requirements. They will provide you with expert advice and help you to find the best solutions for your company.
• Favourable conditions: At Teylor, there is no fixed factoring fee because we look at each customer individually. Our prices are based on the specific circumstances and needs of your company in order to offer you the best possible conditions.

Use cases for factoring

• Export financing: Use factoring to secure your international business and guarantee your liquidity. Factoring allows you to quickly convert foreign receivables into cash, minimising currency risk and non-payment risks. This is particularly beneficial for companies operating in uncertain or fluctuating markets as it provides a fast and secure way to finance international invoices.
• Trade and production: Finance the purchase of raw materials and primary products by selling your receivables immediately. Factoring offers you the opportunity to pay your suppliers more quickly, which may enable you to negotiate better purchasing conditions and discounts.
• Services: Receive immediate liquidity for services rendered without having to wait for long payment terms from your customers. Factoring helps service companies to stabilise their cash flows and avoid financial bottlenecks. This is particularly useful in industries with long billing cycles, such as construction, IT, or consulting. By receiving cash immediately, you can cover your operating costs and invest in further growth.
• Healthcare: Healthcare providers, such as doctors, clinics, and care facilities, can use factoring to improve their liquidity. By selling receivables to insurance companies and patients, they can obtain immediate funds to cover salaries, equipment, and other operational expenses without having to wait for payments.
• Transport and logistics: Companies in the transport and logistics sector benefit from factoring by accelerating their cash flows. This enables them to pay operating costs such as fuel, maintenance, and wages on time. Immediate access to cash also helps to take advantage of growth opportunities and to expand or modernise the fleet.
• Construction industry: Construction companies often have long payment cycles and high operating costs. Factoring offers these companies the liquidity they need to complete projects on time, pay suppliers, and remunerate staff. It also helps to avoid financial bottlenecks during project periods.
• Retail: Retailers can use factoring to replenish their stock and cope with seasonal fluctuations. By selling their receivables immediately, they can react quickly to changes in the market and keep their shelves full at all times.
• Technology: Technology companies often have high capital requirements and long development cycles. Factoring offers them an opportunity to cover their operating costs and invest in research and development without having to rely on venture capital or bank loans.

How to apply for factoring

1. Apply in minutes: Complete our simple online application and receive a non-binding offer immediately.
2. Non-binding offer: The offer is customised and includes indicative borrowing terms. You will receive this offer online and free of charge.
3. Upload documents: Upload the required documents online. We will treat your data securely and confidentially.
4. Identification and digital signature: Identify yourself using video legitimisation and sign the contract digitally.
5. Payout: We will check your documents and transfer the invoice amount to your account within 24 hours.

Take advantage of factoring with Teylor and take your business to the next level. Submit your application today and experience how quick and easy factoring with Teylor can be.

Factoring FAQ

1. What is factoring and how does it work? Factoring is a form of financing in which companies sell their outstanding receivables to a factoring provider. The factoring provider pays the majority of the invoice amount immediately and assumes the receivables management and default risk. This leads to a rapid injection of liquidity and frees up resources in the accounting department.
2. What advantages does factoring offer my company? Factoring offers immediate liquidity, protection against credit defaults, flexible financing options and relieves your accounting department. It improves your credit rating and enables you to obtain better conditions when negotiating loans.
3. What types of receivables can be financed? We finance a wide range of receivables, including invoices from trade, manufacturing, the service sector and more.
4. How long does it take to process my factoring application? Thanks to our digital process, you will usually receive an offer within a few minutes and, once all the necessary documents have been submitted, payment will be made within 24 hours.
5. Is factoring suitable for every company? Factoring is particularly suitable for companies with long payment terms and a high level of receivables. However, it offers flexible solutions for companies of any size and in any sector.
6. How are factoring costs calculated? The costs depend on various factors, such as the annual turnover, the term of the receivables, the number of debtors and receivables, the creditworthiness of the debtors and the type of contract.
7. How secure is my data with factoring? We treat your data securely and confidentially. We use modern encryption technologies to protect your information.