When receivables become a burden,
Full Service Factoring becomes the solution
Full Service factoring is an innovative form of financing for growth-oriented companies and offers you immediate pre-financing of outstanding invoices. True to the motto: written today – paid tomorrow. You also benefit from protection against bad debt losses and reduced administrative workload in accounts receivable management. As a strong component of your financing mix, Full Service Factoring gives you the freedom to strategically develop your business through the use of factoring.
Ready to rethink your liquidity with Full Service Factoring?
Many companies lose liquidity, time, and nerves simply because invoices are paid late. This can be a real burden, especially during periods of growth, restructuring, or as a start-up with a B2B focus.
That’s because it’s precisely at times like these that your company needs every resource it can get — and above all, predictability and security.
Does this sound familiar?
- Are long payment terms slowing down your growth?
- Is your bank imposing new hurdles for credit lines?
- Is dunning taking up your time and resources?
- Are payment defaults jeopardizing your planning?
We offer a simple, secure solution. With Full Service Factoring you can convert outstanding invoices into predictable liquidity — in just 24 hours. At the same time, we relieve you of administrative burdens and assume the full risk of payment defaults. Realize the full potential of your business — we will assist you in taking the next step.
Definition of Full Service Factoring at A.B.S.
With Full Service Factoring, the factoring provider purchases receivables from deliveries of goods and services that exist between the factoring recipient and its customer. A.B.S. pays the equivalent value of the outstanding receivables to the factoring client within 24 hours. In this way, we guarantee the company immediate liquidity in the amount of 90% of its invoice amounts. The remaining amount serves as a blocked credit and is transferred after payment of the outstanding invoice amount by the customer, taking into account discounts, rebates or returns.
In addition, A.B.S. assumes the default protection as part of full service factoring: should a customer become insolvent, A.B.S. bears the default risk.
Another plus point: we take care of all debtor management, including credit checks on debtors, dunning and, if necessary, debt collection procedures. This noticeably relieves your bookkeeping and administration – and you gain valuable resources for your actual core tasks.
Marc Meier
Managing Director
“Our customers appreciate our unbureaucratic approach and lean structures. We develop customised financing solutions with passion and expertise.”
How your everyday life will change with Full Service Factoring
Despite a healthy order book, many companies find themselves facing a liquidity dilemma: outstanding invoices tie up capital that is needed for important investments. At the same time, receivables management takes up valuable time – and traditional bank loans are often difficult to access, costly, or simply too inflexible.
With full-service factoring from A.B.S., you can solve all these challenges at once: you receive immediate liquidity, secure yourself against 90% of payment defaults, and relieve your internal resources. Instead of waiting for payments to come in, you can invest directly in your growth – independently of banks, without collateral, and without waiting.
An additional advantage: Full Service Factoring can be seamlessly integrated into your existing financing mix and ideally complements traditional forms of financing such as working capital loans or leasing models. The financing automatically adapts to your turnover, without renegotiations or additional applications. This is a real game changer, especially in growth phases or after restructuring.
Our customers repeatedly report how much this has changed their everyday work: more planning security, more freedom – and finally a return to focusing on what really matters.
Before
- Outstanding invoices
- Tied-up liquidity
- Time-consuming dunning process
- Uncertainty in the event of payment defaults
- Stressful bank meetings
- Financing does not adapt to company growth
After
- Immediate payment of the invoice amount within 24 hours (details to be specified in the individual contract)
- Fully automated dunning processes through A.B.S.
- Customer credit checks and del credere protection included
- Independent of credit institutions
- Turnover-based financing without renegotiation
Prerequisites for
Full Service Factoring
Our services are aimed at companies of all kinds, but not at private individuals. This is why factoring is often referred to as B2B factoring. Our full-service factoring offer is particularly advantageous for businesses that offer standardised products and services and have a high proportion of regular customers. In other words, for companies that conduct recurring business. In order for factoring to be used as a sensible and practical instrument for SME financing, a few conditions must be met. We have summarised the conditions under which factoring is suitable for you and when it is not.
These companies can benefit from Full Service Factoring:
Our customers who use A.B.S. Full-Service-Factoring are Swiss SMEs or their foreign subsidiaries that have additional liquidity requirements and are mainly active in B2B business. The following criteria must be met for cooperation
- The invoiced service has already been provided in full at the time of invoicing
- Turnover between CHF 500,000 and approx. CHF 50 million
- Low concentration of debtors and no high dependencies on individual customers
- Payment targets of a maximum of 120 days
For these companies Full Service Factoring does not fit:
- the service on which the invoice is based has not yet been fully rendered; e.g. in the case of project business or contracts for work
- in the case of advance payment
- in the case of cash transactions
- for intercompany receivables
- in the case of receivables from private individuals
- in the absence of cover from the credit insurer
Not sure whether your company meets all the requirements for factoring?
Find out in just a few steps with our free checklist — quick, easy and free of charge.
Advantages of
Full Service Factoring
- Open receivables are pre-financed within 24 hours
- 90% of the receivable amount is paid out immediately. The remaining balance will be transferred after receipt of invoice.
- Your receivables are protected against defaults.
- Your liquidity is more predictable thanks to risk protection.
- We continuously monitor and evaluate your accounts receivable.
- We take over and professionalise your accounts receivable accounting.
- We offer a sustainable financing concept that grows with your company.You have an uncomplicated alternative to your bank’s corporate loan.
- We understand your specific business model and find customised solutions.
Have we piqued your interest? Take advantage of all the benefits of full-service factoring and benefit from fast liquidity, full bad debt protection and the assumption of debtor management.
All requirements
for Full Service Factoring fulfilled?
Would you like to know more about factoring and financing? Our experts will be happy to get in touch with you.
Functions of full service factoring
With this form of selling your outstanding invoices, you benefit from all the services associated with factoring: You receive immediate liquidity, the security of payment default insurance and relief in receivables management.
This makes factoring an exciting alternative to bank loans, as full-service factoring combines three key functions:
We guarantee you fast and uncomplicated liquidity for the receivables sold to us: 90% of the outstanding amounts are available to you as free liquidity immediately after the sale of the receivables. It can be used immediately for your business objectives. We retain the remaining 10 % temporarily as security in order to be able to offset possible rebates, cash discounts or claims for defects. As soon as your customer has paid the invoice, we pay this security retention to you immediately after offsetting any deductions.
At the same time, we assume the default risk with the del credere – literally “in good faith”. This also explains the term, which is derived from the Italian “del credere” – “of faith”. In practice, this means that if there is a bad debt loss, the damage is covered by trade credit insurance. This means that you as a factoring customer and we as a factoring provider are protected against del credere risks. As we are also responsible for claims settlement, you do not have to worry about anything.
We also take care of all tasks associated with debtor management, including dunning and debt collection. This is done with the necessary professionalism and sensitivity to take the pressure off you. As a result, your customer relationship remains unencumbered by such unpleasant tasks as the collection of outstanding debts.
How does full service factoring work?
Full Service Factoring in five simple steps
It can take time to finalise traditional financing. But what can you do if you don’t have this time, don’t want to continue to be dependent on your bank and are looking for a solution that can be realised without a great deal of effort? With full-service factoring, we offer you a financing alternative that makes it easy for you to become liquid again.
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- Once we have checked the creditworthiness of your debtors, we draw corresponding limits on them. If you already have credit insurance, we will regularly take over your existing debtor limits.
- You issue the corresponding invoices with an assignment note to your debtors and send us the respective copies of the invoices.
- We purchase the invoices on an ongoing basis within the scope of the debtor limit subscribed. We pay 90% of the gross invoice value to you immediately and initially retain 10% as security for any invoice deductions.
- Your debtors receive reminders from us after the invoices are due.
- We will credit you with the security deposit as soon as payment has been made by the debtor. In the event of del credere, we will pay the retained 10% no later than 90 days after the due date.
When logged into the A.B.S. customer portal, you are always up to date on when account movements have occurred on the part of your business partners. The balance statement provides you with all the important details, such as information on open items, accrued interest, and the current daily available payout amount.
Secure advice now
Would you like to know more about factoring and financing? Our experts will be happy to get in touch with you and advise you free of charge.
