Invoice discounting or receivables factoring is set to help companies, big and small, offset the cashflow crunch in the aftermath of the Covid-19 pandemic and help boost their liquidity as businesses slowly return to normal operations.
Invoice discounting or factoring is the process whereby a non-bank institution purchases the trade receivables of companies involved in the local or international trade. Large size companies or small-to-medium sized enterprises (SMEs) invoice their customers on credit, but instead of waiting until maturity to collect the money, they assign the invoices to the non-bank factor company and receive immediate cash.
Eurivex Trade Finance Limited (http://www.eurivexfinance.com/) is a rapidly growing non-bank institution offering factoring and invoice discounting services to local and overseas companies. The funding is provided against assignment of the credit invoices without the need to provide personal guarantees or mortgage tangible assets. The assigned invoice is the only collateral taken into consideration.
Speed is critical as solutions are required yesterday and no business has the luxury of waiting for either the government to provide guaranteed loans or risk becoming hostage to bank compliance and long delays.
SMEs need funding now which is why one of the best ways to secure funding is to resort to invoice discounting of the whole ledger or selectively assign the invoices of specific companies for immediate funding.
Eurivex Trade Finance Limited (http://www.eurivexfinance.com/) provides alternative funding solutions through fast and simple procedures with very flexible solutions for both local and overseas customers.
Companies only need to supply their latest audited financial statements and management accounts as well as their debtors ageing for the initial evaluation after which a funding offer is made to them with clearly defined terms and conditions including transparent and very competitive pricing.
Eurivex Trade Finance Limited (http://www.eurivexfinance.com/) also provides invoice protection to reduce the risk of customer defaults through credit insurance and its arrangement with Euler Hermes, the global credit insurer which provides coverage in Cyprus, Greece and more than 50 countries.
The majority of SMEs have huge exposure to potential bankruptcies of their customers who have piled up debt prior to Covid-19 pandemic and are now unable to pay their obligations or will potentially be asking for easier credit terms.
The likely relapse of the Covid-19 Pandemic in autumn raises a need for financing contingency plans not only for SMEs but for all companies. Such a relapse could have a catastrophic impact on businesses and the economy hence businesses must be prudent enough to secure extra funding early enough.
The cost of securing such immediate liquidity is negligible when considering that it can save a business without putting additional pressure on the owners.