Very small, small and medium sized companies

Negotiating one-shot or recurrent financing to support your growth or secure your operations.

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Contexts encountered

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Financing your organic growth and your business development

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Supplementing or replacing your short-term financing lines

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Optimising the management of your working capital

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Boosting the financing of your accounts receivable

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Limiting the impact of your customers’ late payments

Benefits of factoring

Avantage
  • Financing rapidly set up
  • Sustainable and immediate financing
  • Delegation of receivables management
  • Availability during the start-up phase
  • Customised and digital solutions

Focus on factoring for SMEs

Banks or Fintechs ?

Over the past decade, the debt financing market has seen the arrival of new players called Fintechs (contraction of the words “finance” and “technology”). Fintechs use digital technology to facilitate companies’ access to financing. They aim to be quicker and easier. Their offers can complement those of banks or, more rarely, replace them. Their refinancing requirements are higher than those of banks: thus they are more expensive.

How to choose between a Fintech and a factoring company?

The choice will be based on 4 criteria: the amount, the urgency, the recurrence of the financing need and, finally, the price.

Fintechs

If your need for financing is occasional, urgent and covers a small part of your invoices: the Fintech is a good solution. It will respond rapidly. However, it is necessary to pay attention to the price of this solution.
If your activity does not meet the eligibility criteria of factoring companies (factors), again, Fintechs can find a creative solution.

Banks

If your financing need is recurrent and involves a significant proportion of your receivables, it is best to consider a factoring company that will remain the most effective and least expensive solution.

Why use a factoring broker?

A broker can help you define your financing need. It advises you and guides you towards the best solutions. It allows you to access the whole factoring market in a single study. The broker will compare the costs and potential financing for each solution. The brokerage business model allows you to receive cutting-edge advice without extra fees.

Through its Factorland platform, Chateaudun Crédit gives you access to all the players on the French market and you benefit from 15 years’ experience to be sure of choosing the right financing solution.

Business case

Our mission: Call for tender and implementation of a factoring contract with a player outside the banking pool

Background: Digital company undergoing change and growth

Objectives

  • Finding a sustainable factoring solution to complete the company’s short-term financing conditions
  • Obtaining competitive financing conditions via a bank other than the historic pool

Our achievments

  • Study of the technical risks (concentration, customer-supplier compensation, transferor risk)
  • Opening to all players in the French market
  • Maintaining a dunning mandate so as not to disturb the business relationship

Information on the deal

  • Activity: Comparison site for insurance, phone, and energy solutions
  • Country: France
  • Customers: French small and medium sized companies
  • Type of contract: Conventional with a dunning mandate
  • Line: € 2 million
  • % of financing: 90% of receivables transferred
  • Cost: <2.00%
  • Duration: unspecified
  • Credit insurance: included

Our added value

  • Identification of technical risks and recommendation of solutions allowing the factor to finance in complete security
  • Comparative study of several original solutions
  • Training of the finance team in different types of factoring products
  • Ongoing advisory role with the Finance team to bring the project to successful completion