e-factoring as a hope for small companies | Non-bank loans
Option for small businesses
Temporary crises in small businesses usually look very similar. Usually, the problem starts when one of the clients does not pay on time. While in the case of a delay of several days this is not very noticeable, the longer it lasts, the faster it can lead to a crisis. The temporary lack of funds already suspends financial liquidity, which in turn will result in difficulties in the functioning of the entire company. Insolvency from colleagues or suppliers can lead to complete cessation of operations. The longer this chain is, the harder it is to break it. Therefore, the only right option is to respond to the problem as soon as possible before it appears.
Then the search for solutions begins. If a loan, it is usually from your loved ones or from the bank. A small percentage of entrepreneurs use factoring. This is a branch of Fintech that is to provide financial assistance to the smallest companies. Its functioning is based on the possibility of buying out overdue receivables that are due from contractors for a given good or specific service. Thanks to this, the company maintains its liquidity through faster access to financial resources. This helps to avoid insolvency.
Factoring not only for large enterprises
Factoring has so far been associated with the activities of larger companies. This changes thanks to the eFaktoring initiator, which is the National Guarantee Fund. As an institution independent of the bank, GFR specializes in providing assistance to micro-enterprises. The advantage of this type of factoring is the adaptation of services to the financial capabilities of small business owners. In this situation, small businesses may be subject to similar procedures as larger enterprises. The difference is that eFactoring procedures are tailored to their capabilities. In addition, the money you need appears even on the same day. This solution avoids a spiral of debt, and hence the risk of bankruptcy.
Fintech is associated with speed of action and a modern approach to the customer. Its branch is non-bank loans, which are also a good alternative in a financial crisis. They are characterized by a minimum of formalities and a short waiting period. This enables immediate settlement of obligations. It is then possible to pay back the amount borrowed when the contractor makes the delayed payment.