Financial SoftwareFactris: “Factoring” Changed How SMEs Did Business in 2019

PRNewswire PRNewswireMarch 3, 20204 min

– Year-end results show a significant shift in SME financing across Europe

– New financing solutions have expanded possibilities for SMEs

New financing solutions changed how small and medium-sized enterprises (SMEs) did business throughout Europe last year, as shown by the year-end results from the fintech company Factris. The results from the Netherlands-based company revealed a sharp increase in alternative-financing activity in 2019, as well as a change in what those customers could achieve by financing their invoices via “factoring.”

Factris reported more than 3,000 invoices factored per month, surpassing a total volume of €250MM by the end of 2019. With so many SMEs using different forms of financing—particularly factoring—it’s clear that a shift has occurred in how SMEs are choosing to finance their businesses. Fintech News

“Part of this shift in SME financing is due to the speed that factoring takes place compared with financing from banks,” explains Brian Reaves, Factris’ CEO. “When an SME needs financing because their customer hasn’t paid an invoice yet, Factris purchases that unpaid invoice on the same day from the SME, providing them cashflow to use however they need. Thus, payments can be made earlier, allowing the SME to negotiate a discount on purchases.”

The results also showed that SMEs used factoring in a variety of ways. For instance, some SMEs used factoring for growth within their company—for example, factoring seasonally to pay their fruit pickers. And factoring wasn’t just limited to one type of business, as revealed by the top three sectors that factored with Factris were: transportation, wholesale trade and manufacturing.

Invoices that were factored also varied immensely, from a few hundred euros up to €650.000. This demonstrates that both large and small SMEs chose factoring for their financing needs in 2019.

Continues Reaves, “The quick, easy capital from factoring invoices has presented new opportunities for SMEs across the EU, empowering them to do more than what was previously possible.”

PRNewswire

PRNewswire

Leave a Reply

Your email address will not be published. Required fields are marked *

We are one of the world’s leading Fintech-based media publication with our content strategized and synthesized to fit right into the expanding ecosystem of Finance professionals. Be it fintech live news, finance press releases, tech articles from Fintech evangelists or interviews from top leaders from global fintech firms, we give the best slice of knowledge topped up with the aptest trends. Our sole mission is to help tech and finance professionals step up with the rapidly emerging Fintech civilization and gain better insights to emerge victorious in every possible way. We adopt a 360-degree approach in order to cater to present a holistic picture of the fintech arena.

Our Publications



FintecBuzz, 2023 © All Rights Reserved