Factoring, a resource used by many companies 0
Today, companies that need immediate liquidity from assets that have a broad portfolio of clients and in turn do not want to incur a number of commercial or administrative costs, and may involve factoring.
This is a set of services through which a company gives commercial invoices to a credit institution or financial institutions, so that the latter provides some or all of the following services:
*Administrative tasks related to customers who holds the entity and manage the collection of invoices.
*Advance payment of invoices and transferred to provide a guarantee in the event of insolvency of a customer.
Obviously the main reason why companies turn to factoring to use this service is that of power, and if needed, you receive advances of money they have to receive on account of the customer invoices. Also another advantage, if they are hired is because insolvencies occurring in the collection are borne by the factoring company.