Tailor-Made Factoring Solutions
What is Tailor-Made Factoring Solutions?
Tailor-made factoring solutions are different modified versions of factoring solutions which are adapted for different conditions of each country that we operate. Their design and implementation are specifically structured after a long analyses of client needs and market specifics. BNP Paribas Factoring Group offers different tailor-made factoring solutions to meet precise needs of each client, differ from one country to another based on;
- Different payment methods
- Sector specifics
- Different market structures
- Different payment conditions
- Company structures
- Local jurisdictions
Reverse Factoring
BNP Paribas Factoring works together with large corporate buyers to pay their supplier invoices early. The supplier benefit from prepaid invoices and accelerated cash flow whilst buyer may pay BNP Paribas Factoring on extended terms. This structure is based on the balance sheet of the buyer. This is a tripartite durable relationship between buyer, supplier and BNP Paribas Factoring.
Who can benefit from Reverse Factoring Solution?
Reverse Factoring can be offered to companies with a strong balance sheet and to their suppliers. It can be leveraged from supplier to their big corporate buyers.
Client (Buyer) Benefits
- Extended payment terms which will bring additional liquidity
- Discounts from sellers
- Build up a trust-based relationship with its suppliers.
- Avoid Supply Chain disruptions
- Financial support to sellers
Seller Benefits
- Early payments of outstanding invoices
- Benefit from the strong balance sheet of Buyer
- Competitive cost agreed with the Client/Buyer
- Quicker credit process with the help of creditworthiness of Buyer.
Distribution Finance
Distribution finance solution is generally specified for distribution companies like automobile sector allowing them to have sufficient inventory to satisfy their customers’ demands with extended payment terms.
Who can benefit from BNP Paribas Factoring Distribution Finance Solution?
Distribution companies who have dealers’ network with goods that are easily traceable.
Client (Seller) Benefits
- Possibility of off-balance sheet financing
- Immediate payments & cash position improvement
- High sales potential as more goods on the market
- Improved commercial relationships with the dealers
Buyer Benefits
- Sufficient stocking
- Satisfy the clients’ demands quickly
- Improved payment terms
Maturity Factoring
BNP Paribas Factoring maintain the credit & collection services and pay the amount (after deducting a commission) of each invoice as it fails due, whether or not the payment was collected.
Who can benefit from BNP Paribas Factoring Maturity Factoring Solution?
Companies with high-bargaining power over their buyers and a network of established dealers.
Client (Seller) Benefits
- Reduce commercial risks.
- Optimized cash flow and its management.
- Improved commercial partnership.
- Match of accounts receivables and account payables.
Progressive Line
It is a modern form combining advantages of financing receivables and client liabilities payments. It allows flexible management of client’s funds: both invoices financing and purchases payments. Factoring limit depends on the level of customer receivables and the entire transaction processing is in e-Trade system. Currently, it can be applied only in Poland.
Who can benefit from BNP Paribas Factoring Progressive Line Solution?
Product dedicated for Clients who have a high level of trade receivables and are focused on efficient management of delivery timelines and suppliers trade limits.
Client (Seller) Benefits
- Discounts for early payments
- Improved liquidity
- Receivables as a collateral
- Credibility with suppliers through timely payments
- More effective negotiation of payment deadlines
- Unique and modern system solution
You can find out more details of our tailor-made factoring solutions designed specifically for you via the local website of BNP Paribas Factoring entity in your country or you can directly contact us with the definition of your business needs and we will find proper factoring solutions for your business model together.
