B2B factoring is becoming increasingly important as a supplementary or alternative form of financing. From small and medium-sized enterprises to large corporations - more and more companies are seeing factoring as an important component of their financing mix. Factoring and leasing are among the most popular alternative forms of financing. The Deutsche Factoring Bank is the specialist for factoring and receivables management and, as a subsidiary of Deutsche Leasing Group, is part of the Savings Banks Finance Group.
This is how factoring works: The Deutsche Factoring Bank, as a so-called "factor", purchases account receivables from your goods deliveries and services. As a factoring client, this not only provides you with additional liquidity. You gain time and relieve your personnel of taking care of the accounts receivable accounting and receivables management. Furthermore, you are protected against bad debt losses.
And this is how factoring works
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- You issue an invoice from delivery / service.
- You submit the invoice to the factor.
- The factor pre-finances the invoice.
- The factor receives the payment of the invoice.
- In the event of non-payment, the factor will take over reminders and collection as well as legal prosecution.
