• Vice-Premier Liu He and central bank governor Yi Gang are among the outgoing senior officials that have reflected on major risks facing the economy
  
• Concerns range from the worrying state of local government finances to inadequate regulation of the financial system, including some small banks
  

It's every B2B company's absolute nightmare late payments. And for good reason invoices paid after the due date or even unpaid bills are commonplace in the sector. For several companies, factoring therefore appears to be an effective means of anticipating possible cash flow problems. What is factoring? Also called factoring , factoring is a financial management technique which consists, for a company, in calling on a specialized organization to take care of its cash flow. The financial institution in question, nicknamed factor , is responsible for all subjects related to invoicing: management of unpaid bills, monitoring of payments, termination of reminders and recovery, etc. Note that there are several types of factoring.

With their own specificities classic factoring: the company sells its receivables directly to the factor. Who immediately pays the corresponding amount. semi-confidential factoring: here, the factor only handles cash management, but not debt collection. one-off factoring: in this case, the factoring contract does not concern all the Bulk SMS Service receivables, but rather a few, and this on an irregular basis. Usually it's on a case-by-case basis. reverse factoring : rarer, reverse factoring is initiated by the debtor, who asks the factor to settle his debts with the company. import factoring and export factoring: these two types of factoring concern B2B companies that work with international customers. How does factoring work.



In concrete terms when a company signs a factoring contract with a financial institution. This means that it assigns all of its receivables to it. The process is as follows: A B2B company issues an invoice for a customer, She uses a factor and signs a factoring contract, It "sells" the invoice to the specialized body, Upon receipt of the document, the factoring company pays 90% of the amount including tax of the receivables to the company. The remaining 10% is intended for the guarantee fund as well as management fees, and is paid to the company when its customers have paid their invoices to the factor . It is the factor who will have to take care of the recovery of the invoice in the event of unpaid or late payment, since it is he who now owns the debt. An effective tool to guard against delays and non-payments In the B2B sector.