In&Fi Crédits Pro recommends factoring as a cash flow solution for businesses

A network of professional credit brokers serving entrepreneurs and retailers, In&Fi Crédits Pro boasts extensive expertise in business financing. Faced with the cash flow problems faced by VSEs and SMEs, Pascal Beuvelet, the network's president, recommends factoring as a simple and effective solution.

With the current economic crisis, businesses are finding themselves in a tight cash flow situation. To quickly and easily replenish their cash flow, the In&Fi Crédits Pro network recommends using factoring. In 2011, this financing solution experienced strong growth.
Indeed, Basel III's capital requirements and immediate solvency require banks to implement new security measures to support corporate financing. One way is to transfer a portion of their "blank" short-term credit lines to their factor. These "blank" commitments are thus transformed into very short-term positions (60 or 70 days) that the factor can quickly unwind, with reduced risk.
This is why banks and their factoring subsidiaries are increasingly recommending this rapid and less risky financing solution than a simple loan. Thus, in 2011, the amount of receivables handled during the first quarter increased by +19,2% compared to the same period of the previous year, reaching €40.5 billion.

A SIMPLE AND SECURE WAY OF FINANCING

A factoring line is easy to set up because it is not affected by the quality of the company's balance sheet. First, it is possible to obtain financing from €50.
"Most factors analyze their risks not on the assignor but on the drawee," explains Pascal Beuvelet, President of In&Fi Crédits Pro. "Indeed, factoring conditions depend primarily on the quality of the company's client portfolio and not on its own financial health. Thus, with factoring, the factor is not at risk on the company but on the assets it assigns, i.e., its trade receivables. In this configuration, the client risk is diluted with a low probability of default."
Finally, the decision-making and enforcement process is rapid.

THE COST OF FACTORING

The factoring commission, which includes remuneration for management and collection services provided by the factor, is calculated according to a rate applied to the turnover entrusted. This rate varies (between 0,50% and 2,50%) depending on the quality of the clientele, the turnover and the number of clients entrusted.
The advance financing fee is calculated pro rata temporis. This cost is comparable to the bank financing rate, i.e., 3-month Euribor plus 0.2% to 3%.
"Factoring is inexpensive compared to the real costs a company must bear to manage its customer accounts: payroll costs, unpaid bills, etc.," emphasizes Pascal Beuvelet. "We signed a partnership with a European-scale factor because we believe that factoring is a fast and secure means of financing for companies experiencing difficulties in the current economic climate. It's a method that increasingly meets the new needs of VSEs and SMEs."

> About In&Fi Crédits Pro:
Founded in 2009 by Pascal Beuvelet and launched under a brand license in 2010, In&Fi Crédits Pro is a credit brokerage firm for businesses. Its mission is to seek out the best possible financing from various banking institutions to present to its clients. It is part of the Global Franchise Crédit (GFC) group.
- Services - Financing of business creation, takeover of businesses and companies, fittings and works, equipment and vehicles (Rental with Purchase Option or Long-Term Rental) purchase of commercial and professional premises as well as cash loans in the form of factoring.
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www.inandficreditspro.com