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Defacto offers instant, short-term, 100% flexible financing for SMBs.

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Online Factoring: Financing in seconds with Defacto
Mathieu Galvani
February 16, 2024
3 min

Online Factoring

What is factoring?

In a constantly evolving financial world, staying abreast of possible financing solutions is vital to ensure the stability and growth of companies.

At Defacto, we offer a new solution, taking the advantages of factoring without its drawbacks. Simple, fast, and efficient.

Factoring is a financial solution that allows professionals to maintain a healthy treasury by monetizing their trade receivables.

This practice involves the transfer of these receivables to a financial institution, which in return, provides a cash advance, allowing companies rapid access to the necessary liquidity for their daily operations.

The concept is very simple: by transferring their customer positions to a financial institution, companies can thus receive up to 90% of the value of their invoices in advance.

This reduces the delay between the delivery of products or services and the receipt of payments. Nevertheless, this procedure is not without some drawbacks.

A relatively high cost

This is the sensitive point of this financing method: its quite significant cost. Indeed, the fees of factoring include a management fee, a financing commission, and additional charges.

The minimum amount is 0.5% of the total amount of invoices. Structures with low charges will be disadvantaged by this significant expense. So, it is important to negotiate the commissions of your contract well before you commit.

A financing limit

It is possible that under certain circumstances, the factor (factoring company) may refuse to finance a company. As a general rule, it is based on the ability of your customers to repay.

If they are not judged sufficiently solvent, the factoring company will not grant you financing.

A long-term commitment

Most factoring contracts require a commitment for one year. This can be restrictive for companies that do not want to spread their financing over time.

The factor may ask you for a minimum annual total amount and may even require a personal guarantee from you.

A risk of deterioration of customer relationships

By transferring all or part of your customer accounts to the factoring company, you risk losing your customers' trust.

Indeed, this company uses different collection methods than yours and this can have negative repercussions on your customer relationships.

That's why we advise you to strengthen your relationships with your customers if you wish to turn to factoring.

A complex procedure

Factoring contracts can seem complicated for a non-initiated company.

There are many conditions to build a solid file: retention of guarantee, financing ceiling, delegation of management mandate, minimum amount required, file fees, etc.

However, you have the option to use a broker to assist you in your steps.

The retention of guarantee

To protect itself from any form of dispute, the factoring company will ask you for a guarantee fund. Therefore, you can only recover 80 to 90% of the amount of your receivables at the end of the procedure.

Short-term financing with Defacto

As an expert in short-term financing, Defacto has redefined traditional factoring into a simplified and digitalized process.

Our receivables financing service is designed to adapt to the specific needs of all businesses. We offer you a fast solution at very competitive rates.

By removing the constraints often associated with traditional factoring, we make it a point of honor to preserve the integrity of your business relationships and guarantee you absolute control over your financial operations.

We stand out thanks to our intuitive platform, entirely online.

This modern process gives you access to quick financing, without the drawbacks associated with the administrative procedures that go hand in hand with the factoring methods provided by companies.

Defacto values and respects your supplier relationships in which we do not interfere. Our goal is to guarantee you total transparency throughout the financing process.

Indeed, we are aware that it is important for businesses to maintain good relations with their customers and suppliers.

Defacto also stands out for its independence from banking institutions, thus offering financial flexibility and autonomy appreciated by our customers.

The direct connection to your billing and accounting tools is an interesting feature that simplifies the financing process and reduces misunderstandings often encountered in traditional factoring solutions.

For each company and for each situation, there is a factoring solution: I finance my growth online with Defacto.

How to carry out your short-term financing online with Defacto?

At Defacto, we have simplified the online financing procedure to make it more accessible. The process is summarised in four steps:

  • You submit your commercial receivables to us
  • You choose the parameters of your financing
  • We send you liquidity according to your terms
  • Your repayments are automated

All the steps are fully digitised, not requiring the use of paper and thus making the experience more accessible.

There is no need to intervene, we connect to your invoicing and accounting tools autonomously. We do the same with your bank.

To obtain a financing request, nothing could be simpler: log in to our interface and answer the eligibility test in just one minute.

The response is immediate. If you are eligible, all you have to do is make your request directly in just a few clicks.

Example of a transaction with Defacto

Let's take the example of a communication agency, which is experiencing interesting growth. Indeed, with word of mouth, its clientele is increasing and its production must follow.

The need to hire staff and expand its premises becomes apparent. However, the extended payment deadlines of some of its clients hinder its cash flow and delay its plans.

Here is how Defacto can intervene and help this company:

  • Real-time eligibility test:

By securely connecting its financial tools (banks, invoicing, accounting, etc...), the agency discovers its financing capacity in a few seconds (27 on average).

  • Quick Financing:

By opting for Defacto, the agency finances the invoices and receives up to 100% of the total amount in a very short time.

It can thus unlock the necessary funds to increase its production and finance the rental of a new space.

  • Preservation of Client Relationships:

Defacto not intervening in its commercial relations, the agency maintains the trust and loyalty of its clients.

  • Transparency and Control:

From Defacto's online platform, the agency can follow in real time the status of its invoices and the funds received, ensuring better financial planning.

  • Access to a Dedicated Customer Service:

In case of assistance, the company has access to a team of experts at Defacto ready to provide advice and quick help.

In conclusion, financing by Defacto allows this company to execute all its plans without hindering its relations with its clients, while keeping control over its finances.

Why choose Defacto for your financing?

In a competitive economic environment, Defacto presents itself as a partner of choice to help you better manage your finances, offering online financing solutions adapted to the modern requirements of companies.

We have redefined factoring to make it more accessible and more customer-focused. As fintech professionals, we have simplified our process to meet the needs of all our debtors.

Defacto maintains the utmost respect for your business relationships, whether with your customers or your suppliers.

We make it a point of honor not to interfere in these. Our financing process is characterized by complete discretion and transparency.

Our financing service has the advantage of being 100% accessible online. Our platform connects directly to your invoicing and accounting tools, as well as your bank.

This direct connection allows you real-time monitoring of your financial data. Thanks to this, you can optimize your cash flow.

Defacto presents itself as totally independent from traditional banks, thus offering better discretion to our borrowers.

Our system guarantees you perfect autonomy, freeing you from the constraints often imposed by traditional banking institutions.

We have designed an eligibility test, about a minute to fill out, which will allow you to get an immediate answer about your right to financing. A significant time saver in an increasingly dynamic commercial environment.

All stages of our financing process have been designed to be pleasant and easy to use. The user interface offers our applicants a smooth experience, fast and satisfying.

A recent study showed that the efficiency of Defacto's online process can reduce by 75% the time needed to obtain short-term financing compared to traditional methods.

Companies that have adopted the Defacto online platform have reported a 30% improvement in their cash flow management compared to traditional factoring solutions.

The efficiency and ease of use of Defacto make it a preferred short-term financing option for modern companies, keen to maintain healthy relationships with their partners while ensuring optimal financial management.

Get access to instant pay-as-you-go financing to cover stock, marketing, and B2B receivables to grow on your own terms.
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