What is working capital financing?
Working capital is the capital that you as an entrepreneur need to meet your daily financial obligations. Obligations such as paying suppliers, paying salaries, replenishing supplies, performing maintenance, etc. Companies that have insufficient working capital have problems with their daily expenses, for example, can no longer pay their bills. So, in order to be able to continue your business successfully, you need sufficient financial scope on a continuous basis. The solution? Working capital financing.
Working capital financing is a form of corporate credit based on assets such as receivables from receivables and inventories. It is a flexible form of financing that allows you to free up maximum liquidity based on your current turnover for your financing needs. This is in contrast to forms of credit where the emphasis is mainly on your historical business performance.
Do you not have the opportunity to increase your working capital? Then working capital financing can offer the solution. Your working capital can be financed in various ways. Factoring is the most popular and fastest-growing way.
The benefits of factoring
When you opt for factoring, you have the following benefits:
- Factoring is often arranged a lot faster than a traditional form of financing at your bank. So you save a huge amount of time.
- Factoring is a very flexible form of working capital financing and gives you the opportunity to grow the facility with your company.
- Factoring companies look at your debtor portfolio and its creditworthiness. The size of the factoring facility depends on the size and quality of your debtor portfolio.
- You can often receive invoice payments from your factoring partner within one working day.
- Professional and effective credit management can also be taken over by the factoring company. Non-resource factoring: the risk lies with the factoring company if invoices are not paid.
Request multiple quotes immediately
Are you also convinced of this form of working capital financing? Request a free quote without obligation from factoring-offerte.be. Within one business day you will receive multiple quotes from the best factoring companies in Belgium.