Factoring is the obvious choice for companies wishing to outsource the administrative handling of the debtor accounts and at the same time benefit from the opportunity to activate outstanding invoices to liquidity here and now via debtor financing.
Factoring – by some called invoice discounting or debtors financing – is an obvious alternative or supplement to a traditional bank overdraft facility. At the same time, a number of services are linked to modern factoring.
When you outsource your accounts receivable, you ensure an efficient collection of your outstanding amounts all year round – regardless of holidays and busy periods. Experience shows that a timely and professional dunning procedure ensures faster payments and that there is respect for inquiries made by a factoring company.
Furthermore, outsourcing provides more flexibility by converting overheads to variable costs.
At the same time, you can optimize the financing of your company operations with a working relationship with Midt Factoring. Credit sale is converted to cash sale and liquidity here and now, because at Midt Factoring you are typically paid 80% of the invoice amount as soon as the invoice is issued. This is significantly more than you can achieve by using traditional sources of finance, and the costs for debtor financing via invoice discounting can be kept low.
You transfer the information about your outstanding accounts to Midt Factoring and at the same time, your customers are notified that all payments are to be made to Midt Factoring. Subsequently, we take over the responsibility for managing your total accounts receivable where every single invoice is followed closely from “cradle to grave”.
All communication between your and Midt Factoring’s financial system is automated, and all transactions are easily available via our online portal “MF Online”.
As a supplement, we can offer a risk protection agreement so that your customers are credit rated, and we cover part of the risk by trading with the specific customers.
Debtor financing can be provided continually in proportion to the value of the debtor portfolio.
Most companies working within the B2B segment can benefit from factoring.