Factoring (transfer of claims)
Factoring is a process by which the creditor (transferor) can transfer the ownership of his credit to an economic entity with appropriate authorizations (assignee) against a consideration agreed between the parties.
Selling loans can significantly reduce internal management costs, allowing the company to focus employees on its core business. With the formulas “revolving” and “maturity”, the planning of the minimum cash flow can enable better investment planning by reducing access to credit and the associated financial costs, in addition to a correct taxation. The preparation of the annual financial statements in accordance with the principles of clarity, truthfulness and fairness also allows the assignment of a correct valuation by the credit system.
Advantages : Alternative financing of the banking system, cash flow planning, focusing on the core business, reducing administrative costs
Factoring (cleaning of the balance sheet total)
The assignment of receivables, which are difficult to recover, is recommended in the context of the previous out-of-court settlement. This service offered provides for an important tax reclaim and it’s a choice that cannot be contested in the event of verification by the competent authorities.
This method is particularly suitable for numerically high loans but of reduced amount, and for high amount credits, for which the costs and the duration of the actions cannot be borne. In the latter case, Teseo continues to support the creditor who sold the credit in VAT collection.
Advantages : Recovery of taxation, no costs for legal activities, preparation of financial statements in accordance with the principles of clarity, truthfulness and fairness