We understand that keeping a factoring business moving forward in the fast-paced, tech-driven world is quite challenging. It involves a plethora of complex and tedious tasks that are rather time-consuming. But the good news is that ZWEBB Fintech can help you out with that.
We offer a cutting-edge factoring solution capable of saving your precious time and making all your factoring processes more efficient, automated, and streamlined.
The invoice factoring platform produced by ZWEBB Fintech provides:
- Fully automated invoice factoring, invoice discounting, or reverse factoring
- Instant client registration with integrated online eID-verification
- Flexible KYC/KYB/AML integrated screening service
- API connectivity to external accounting, CRM, or core-banking systems
- Online, real-time price estimates directly on the platform
- On-premise or SaaS software installations
Quick time-to-market, 1-2 weeks
Factoring, Invoice Discounting and Reverse Factoring Platform Advantages
On our cloud-based factoring platform administrators can monitor all invoice factoring, invoice discounting or reverse factoring processes and observe the status of a large number of invoices at the same time.
Utilizing our cloud-based, white label, fintech factoring software, will cut down on your administrative work, reduce your costs, and improve efficiency. This will ultimately scale your factoring business and empower it to thrive.
By selling their invoices, the supplier can receive the money from the invoices quickly and safely instead of waiting for customer payments for up to 30, 60, or 90 days. In that way, the supplier can increase their cash flow, avoid administrative work connected to the invoices, increase liquidity and act quickly on new business opportunities. On the other hand, you, as a factor can make a profit by collecting the accounts receivable at a full price.
Some advantages of using factoring system are:
- Increased liquid capital and freeing assets for new investments
- Spending less time on administrative work
- Getting fast and secure capital from outstanding invoices
Recourse vs Non-Recourse Factoring
There are two different types of invoice factoring: recourse and non-recourse factoring. While both provide consistent cash flow, they differ in what happens if the invoices are not paid back by their due date.
Recourse factoring means that the selling company still takes the credit risk (standard factoring). Unpaid invoices must eventually be bought back by the supplier. Because of that, recourse factoring involves higher financial risk for the supplier compared to the non-recourse factoring. Recourse factoring system comes with higher advances and lower factor fees when purchasing the invoices.
Non-recourse factoring (invoice discounting) means that the factor takes all the credit risk. This type of invoice factoring system usually comes with lower advance rates and higher factor fees compared to the recourse factoring since the company selling the invoice avoids all the credit risk. Factoring system without recourse is offered within the invoice discounting option to companies with good solvency.
Invoice financing vs Reverse Factoring
Invoice financing is another way of using outstanding invoices to free up fast cash. Invoice financing means getting a loan where the security is made up of the outstanding invoices and incoming assets. The loan is then paid back with the funds that arrive when the invoices are paid. The company will still maintain the sales record, even though the money that comes in goes directly to the third party.
Reverse factoring is similar to invoice financing; however, instead of a loan, it provides early payments to the suppliers based on previously approved invoices. In most cases, debtors initiate reverse factoring aiming to improve their suppliers’ cash flow and speed up production.
Are you looking for a Factoring platform provider for your target market?
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