The usefulness of credit transfer for companies

Are you a company that has been accumulating credit for too long? Would you like to make a new investment but you lack the necessary capital? The way to recover your due, certainly faster, is to contact a debt collection company.

A choice that will bring you two advantages that you will touch very soon: immediate access to liquidity for investments and an increase in production time. All the open questions with your debtors, managed so far by you, will in fact be taken care of by experts and experts in the sector.


Credit transfer: when and why it pays

Credit loans

Before deciding who to contact, carefully consider three aspects: the company’s experience, its expertise in the matter and its willingness to respond to your concerns. In the credit transfer procedure, therefore, there are three players involved : the transferring entrepreneur (i.e. the creditor that needs to be paid), the factor (the third-party intermediary institution, to which the credit is transferred) and the assigned (the debtor with the effects to be paid).

Including the mechanism at the base, you can proceed with the assignment of the credit choosing between two formulas: the assignment without recourse or without recourse . Two formulas with different nuances but united by an advantage: the possibility for companies, in a very short time, to regain their capital.


Credit transfer of a company: when and why it pays

Credit transfer of a company: when and why it pays

Let’s take the example of a company that has a credit of 10,000 euros and that needs liquidity as soon as possible; a company which, having many credits among its customers, undertakes to collect them with its own strength. Often, however, these activities do not get the desired result in a short time and the liquidity is slow to arrive on the current account.

So how can the company solve the problem of the skein? This is where a debt collection company comes into play that is able to give liquidity to the creditor company in a very short time. It follows that the company will have the capital it needs in one or two days .

Waiting for your capital without consulting a third party, especially in case of need, could be a risk for your company. Even if the debtor paid you shortly, in the absence of a company that acts as an intermediary, you would have the money for example upon the expiry of the bank receipts at 30, 60, 90, 120 days from the invoice date.

At best, however, even after respecting a thirty-day payment, the money generally enters your availability 4 or 5 days later because before giving you liquidity, your bank must verify the actual issue of the payment. From the initial 30 days, therefore, it already passes to 35 days. Too many if you need immediate liquidity, sufficient reason to evaluate a credit transfer.

The assignment of trade receivables is also useful for eliminating from the balance sheet credits , which contribute to taxable income, from the corporate balance sheet. Through this operation, therefore, companies can also benefit from a tax relief .

Another advantage is that, relieving you of your daily approach with debtors, rely on a third party company that frees up time for your business.

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