| Subject: Re: Reverse Factoring |
Author:
 troll123
|
[
Next Thread |
Previous Thread |
Next Message |
Previous Message
]
Date Posted: 13:37:22 01/27/19 Sun
In reply to:
troll123
's message, "Re: Reverse Factoring" on 13:36:47 01/27/19 Sun
>>>Unlike traditional factoring, where a supplier wants
>>>to finance its receivables, reverse factoring (or
>>>supply chain financing) is a financing solution
>>>initiated by the ordering party (the customer) in
>>>order to help its suppliers to finance its
>receivables
rally considered a successor to the Second World War and is often suggested to become a nuclear war, devastating in nature and likely much more violent than the First World War and the Second World War combined; in 1947, Albert Einstein commented that "I know not with what weapons World War III will be fought, but World War IV will be fought with sticks and stones."[6][7] It has been anticipated and planned for by military and civil authorities and has been explored in fiction in many countries. Concepts have ranged from purely-conventional scenarios, to limited use of nuclear weapons, to the complete destruction of the planet's surface.
Other global conflicts
See also: American Revolutionary War, Cold War, War on Terror, Second Congo War, Syrian Civil War, Iraqi Civil War (2014–2017), and Cold War II
Various former government officials, politicians, authors, and military leaders (including the following people: James Woolsey[8] Alexandre de Marenches,[9] Eliot Cohen,[10] and Subcomandante Marcos[11]) have attempted to apply the labels of the "Third World War" and "Fourth World War" to various past and present global wars since the closing of the Second World War, for example, the Cold War and the War on Terror, respectively. Among these are former American, French, and Mexican government officials, military leaders, politicians, and authors: Despite their efforts, none of these wars are commonly deemed world wars.
Wars described by some historians as "World War Zero" include the Seven Years' War[12] and the onset of the Late Bronze Age collapse.[13]
The Second Congo War (1998–2003) involved nine nations and led to ongoing low-level warfare despite an official peace and the first democratic elections in 2006. It has often been referred to as "Africa's World War".[14] During the early-21st century the Syrian Civil War and the Iraqi Civil War and their worldwide spillovers are sometimes described as proxy wars waged between the United States and Russia,[15][16][17][18] which led some commentators to characterize the situation as a "proto-world war" with nearly a dozen countries embroiled in two overlapping conflicts.[19]
Wars with higher death tolls than the First World War
See also: List of wars by death toll and World War I casualties
The two world wars of the 20th century had caused unprecedented casualties and destruction across the theaters of conflict.[20] There have been several wars that occurred with as many or more deaths than in the First World War (16,563,868–40,000,000), including:
>>>more easily and at a lower interest rate than what
>>>would normally be offered. In 2011, the reverse
>>>factoring market was still very small, accounting for
>>>less than 3% of the factoring market.[citation
>needed]
>>>
>
>Part of a series on
>War
>History[show]
>Battlespace[show]
>Weapons[show]
>Tactics[show]
>Operational[show]
>Strategy[show]
>Grand strategy[show]
>Organization[show]
>Personnel[show]
>Logistics[show]
>Related[show]
>Lists[show]
>vte
>A world war is a large-scale war which affects the
>whole world directly or indirectly. World wars span
>multiple countries on multiple continents or just two
>countries, with battles fought in many theaters. While
>a variety of global conflicts have been subjectively
>deemed "world wars", such as the Cold War and the War
>on Terror, the term is widely and usually accepted
>only as it is retrospectively applied to two major
>international conflicts that occurred during the 20th
>century: World War I (1914–18) and World War II
>(1939–45).
>
>
>Contents
>1 Origin of the term
>2 First World War
>3 Second World War
>4 Third World War
>5 Other global conflicts
>5.1 Wars with higher death tolls than the First World
>War
>5.2 Wars spanning continents
>6 See also
>7 References
>8 External links
>Origin of the term
>The Oxford English Dictionary cited the first known
>usage in the English language to a Scottish newspaper,
>The People's Journal, in 1848: "A war among the great
>powers is now necessarily a world-war." The term
>"world war" is used by Karl Marx and his associate,
>Friedrich Engels,[1] in a series of articles published
>around 1850 called The Class Struggles in France.
>Rasmus B. Anderson in 1889 described an episode in
>Teutonic mythology as a “world war” (Swedish:
>världskrig), justifying this description by a line in
>an Old Norse epic poem, "Völuspá: folcvig fyrst i
>heimi" ("The first great war in the world".)[2] German
>writer August Wilhelm Otto Niemann had used the term
>"world war" in the title of his anti-British novel,
>Der Weltkrieg: Deutsche Träume (The World War: German
>Dreams) in 1904, published in English as The Coming
>Conquest of England.
>
>In English, the term "First World War" had been used
>by Charles à Court Repington, as a title for his
>memoirs (published in 1920); he had noted his
>discussion on the matter with a Major Johnstone of
>Harvard University in his diary entry of September 10,
>1918.[3]
>
>The term "World War I" was coined by Time magazine on
>page 28b of its June 12, 1939 issue. In the same
>article, on page 32, the term "World War II" was first
>used speculatively to describe the upcoming war. The
>first use for the actual war came in its issue of
>September 11, 1939.[4] One week earlier, on September
>4, the day after France and the United Kingdom
>declared war on Germany, the Danish newspaper
>Kristeligt Dagblad used the term on its front page,
>saying "The Second World War broke out yesterday at 11
>a.m."[5]
>
>Speculative fiction authors had been noting the
>concept of a Second World War in 1919 and 1920, when
>Milo Hastings wrote his dystopian novel, City of
>Endless Night. Other languages have also adopted the
>"world war" terminology, for example; in French:
>"world war" is translated as guerre mondiale, in
>German: Weltkrieg (which, prior to the war, had been
>used in the more abstract meaning of a global
>conflict), in Italian: guerra mondiale, in Spanish and
>Portuguese: guerra mundial, in Danish and Norwegian:
>verdenskrig, and in Russian:
>мировая
>война (mirovaya voyna.)
>
>First World War
>Main article: World War I
>World War I occurred from 1914 to 1918. In terms of
>human technological history, the scale of World War I
>was enabled by the technological advances of the
>second industrial revolution and the resulting
>globalization that allowed global power projection and
>mass production of military hardware. Wars on such a
>scale have not been repeated since the onset of the
>Atomic Age and the resulting danger of
>mutually-assured destruction. It had been recognized
>that the complex system of opposing alliances (the
>German, Austro-Hungarian, and Ottoman Empires against
>the British, Russian, and French Empires) was likely
>to lead to a worldwide conflict if a war broke out.
>Due to this fact, a very minute conflict between two
>countries had the potential to set off a domino effect
>of alliances, triggering a world war. The fact that
>the powers involved had large overseas empires
>virtually guaranteed that such a war would be
>worldwide, as the colonies' resources would be a
>crucial strategic factor. The same strategic
>considerations also ensured that the combatants would
>strike at each other's colonies, thus spreading the
>wars far more widely than those of pre-Columbian times.
>
>War crimes were perpetrated in World War I. Chemical
>weapons were used in the First World War despite the
>Hague Conventions of 1899 and 1907 having outlawed the
>use of such weapons in warfare. The Ottoman Empire was
>responsible for the Armenian genocide, the death of
>over one million Armenians during the First World War.
>
>Second World War
>Main article: World War II
>
>This section needs additional citations for
>verification. Please help improve this article by
>adding citations to reliable sources. Unsourced
>material may be challenged and removed. (September
>2018) (Learn how and when to remove this template
>message)
>The Second World War occurred from 1939 to 1945 and is
>the only conflict in which atomic bombs have been
>used. Hiroshima and Nagasaki, in Japan, were
>devastated by atomic bombs dropped by the United
>States. Nazi Germany was responsible for genocides,
>most notably the Holocaust, the killing of six million
>Jews. The United States, the Soviet Union, and Canada
>deported and interned minority groups within their own
>borders, and largely because of the conflict, many
>ethnic Germans were later expelled from Eastern
>Europe. Japan was responsible for attacking neutral
>nations without a declaration of war, such as the
>bombing of Pearl Harbor. It is also known for its
>brutal treatment and killing of Allied prisoners of
>war and the inhabitants of Asia. It also used Asians
>as forced laborers and was responsible for the Nanking
>massacre where 250,000 civilians in the city were
>brutally murdered by Japanese troops. Non-combatants
>suffered at least as badly as or worse than
>combatants, and the distinction between combatants and
>non-combatants was often blurred by belligerents of
>total war in both conflicts.[citation needed]
>
>The outcome of World War II had a profound effect on
>the course of world history. The old European empires
>either collapsed or were dismantled as a direct result
>of the wars' crushing costs and, in some cases, their
>fall was due to the defeat of imperial powers. The
>United States became firmly established as the
>dominant global superpower, along with its ideological
>foe, the Soviet Union, in close competition. The two
>superpowers exerted political influence over most of
>the world's nation-states for decades after the end of
>the Second World War. The modern international
>security, economic, and diplomatic system was created
>in the aftermath of the wars.[citation needed]
>
>Institutions such as the United Nations were
>established to collectivize international affairs,
>with the explicit goal of preventing another outbreak
>of general war. The wars had also greatly changed the
>course of daily life. Technologies developed during
>wartime had a profound effect on peacetime life as
>well, such as by advances in jet aircraft, penicillin,
>nuclear energy, and electronic computers.[citation
>needed]
>
>Third World War
>Main article: World War III
>Since the atomic bombings of Hiroshima and Nagasaki
>during the Second World War, there has been a
>widespread and prolonged fear of a potential Third
>World War between nuclear-armed powers. The Third
>World War is generally considered a successor to the
>Second World War and is often suggested to become a
>nuclear war, devastating in nature and likely much
>more violent than the First World War and the Second
>World War combined; in 1947, Albert Einstein commented
>that "I know not with what weapons World War III will
>be fought, but World War IV will be fought with sticks
>and stones."[6][7] It has been anticipated and planned
>for by military and civil authorities and has been
>explored in fiction in many countries. Concepts have
>ranged from purely-conventional scenarios, to limited
>use of nuclear weapons, to the complete destruction of
>the planet's surface.
>
>Other global conflicts
>See also: American Revolutionary War, Cold War, War on
>Terror, Second Congo War, Syrian Civil War, Iraqi
>Civil War (2014–2017), and Cold War II
>Various former government officials, politicians,
>authors, and military leaders (including the following
>people: James Woolsey[8] Alexandre de Marenches,[9]
>Eliot Cohen,[10] and Subcomandante Marcos[11]) have
>attempted to apply the labels of the "Third World War"
>and "Fourth World War" to various past and present
>global wars since the closing of the Second World War,
>for example, the Cold War and the War on Terror,
>respectively. Among these are former American, French,
>and Mexican government officials, military leaders,
>politicians, and authors: Despite their efforts, none
>of these wars are commonly deemed world wars.
>
>Wars described by some historians as "World War Zero"
>include the Seven Years' War[12] and the onset of the
>Late Bronze Age collapse.[13]
>
>The Second Congo War (1998–2003) involved nine nations
>and led to ongoing low-level warfare despite an
>official peace and the first democratic elections in
>2006. It has often been referred to as "Africa's World
>War".[14] During the early-21st century the Syrian
>Civil War and the Iraqi Civil War and their worldwide
>spillovers are sometimes described as proxy wars waged
>between the United States and Russia,[15][16][17][18]
>which led some commentators to characterize the
>situation as a "proto-world war" with nearly a dozen
>countries embroiled in two overlapping conflicts.[19]
>
>Wars with higher death tolls than the First World War
>See also: List of wars by death toll and World War I
>casualties
>The two world wars of the 20th century had caused
>unprecedented casualties and destruction across the
>theaters of conflict.[20] There have been several wars
>that occurred with as many or more deaths than in the
>First World War (16,563,868–40,000,000), including:
>>
>>
>>
>>Part of a series on
>>War
>>History[show]
>>Battlespace[show]
>>Weapons[show]
>>Tactics[show]
>>Operational[show]
>>Strategy[show]
>>Grand strategy[show]
>>Organization[show]
>>Personnel[show]
>>Logistics[show]
>>Related[show]
>>Lists[show]
>>vte
>>A world war is a large-scale war which affects the
>>whole world directly or indirectly. World wars span
>>multiple countries on multiple continents or just two
>>countries, with battles fought in many theaters. While
>>a variety of global conflicts have been subjectively
>>deemed "world wars", such as the Cold War and the War
>>on Terror, the term is widely and usually accepted
>>only as it is retrospectively applied to two major
>>international conflicts that occurred during the 20th
>>century: World War I (1914–18) and World War II
>>(1939–45).
>>
>>
>>Contents
>>1 Origin of the term
>>2 First World War
>>3 Second World War
>>4 Third World War
>>5 Other global conflicts
>>5.1 Wars with higher death tolls than the First World
>>War
>>5.2 Wars spanning continents
>>6 See also
>>7 References
>>8 External links
>>Origin of the term
>>The Oxford English Dictionary cited the first known
>>usage in the English language to a Scottish newspaper,
>>The People's Journal, in 1848: "A war among the great
>>powers is now necessarily a world-war." The term
>>"world war" is used by Karl Marx and his associate,
>>Friedrich Engels,[1] in a series of articles published
>>around 1850 called The Class Struggles in France.
>>Rasmus B. Anderson in 1889 described an episode in
>>Teutonic mythology as a “world war” (Swedish:
>>världskrig), justifying this description by a line in
>>an Old Norse epic poem, "Völuspá: folcvig fyrst i
>>heimi" ("The first great war in the world".)[2] German
>>writer August Wilhelm Otto Niemann had used the term
>>"world war" in the title of his anti-British novel,
>>Der Weltkrieg: Deutsche Träume (The World War: German
>>Dreams) in 1904, published in English as The Coming
>>Conquest of England.
>>
>>In English, the term "First World War" had been used
>>by Charles à Court Repington, as a title for his
>>memoirs (published in 1920); he had noted his
>>discussion on the matter with a Major Johnstone of
>>Harvard University in his diary entry of September 10,
>>1918.[3]
>>
>>The term "World War I" was coined by Time magazine on
>>page 28b of its June 12, 1939 issue. In the same
>>article, on page 32, the term "World War II" was first
>>used speculatively to describe the upcoming war. The
>>first use for the actual war came in its issue of
>>September 11, 1939.[4] One week earlier, on September
>>4, the day after France and the United Kingdom
>>declared war on Germany, the Danish newspaper
>>Kristeligt Dagblad used the term on its front page,
>>saying "The Second World War broke out yesterday at 11
>>a.m."[5]
>>
>>Speculative fiction authors had been noting the
>>concept of a Second World War in 1919 and 1920, when
>>Milo Hastings wrote his dystopian novel, City of
>>Endless Night. Other languages have also adopted the
>>"world war" terminology, for example; in French:
>>"world war" is translated as guerre mondiale, in
>>German: Weltkrieg (which, prior to the war, had been
>>used in the more abstract meaning of a global
>>conflict), in Italian: guerra mondiale, in Spanish and
>>Portuguese: guerra mundial, in Danish and Norwegian:
>>verdenskrig, and in Russian:
>>мировая
>>война (mirovaya voyna.)
>>
>>First World War
>>Main article: World War I
>>World War I occurred from 1914 to 1918. In terms of
>>human technological history, the scale of World War I
>>was enabled by the technological advances of the
>>second industrial revolution and the resulting
>>globalization that allowed global power projection and
>>mass production of military hardware. Wars on such a
>>scale have not been repeated since the onset of the
>>Atomic Age and the resulting danger of
>>mutually-assured destruction. It had been recognized
>>that the complex system of opposing alliances (the
>>German, Austro-Hungarian, and Ottoman Empires against
>>the British, Russian, and French Empires) was likely
>>to lead to a worldwide conflict if a war broke out.
>>Due to this fact, a very minute conflict between two
>>countries had the potential to set off a domino effect
>>of alliances, triggering a world war. The fact that
>>the powers involved had large overseas empires
>>virtually guaranteed that such a war would be
>>worldwide, as the colonies' resources would be a
>>crucial strategic factor. The same strategic
>>considerations also ensured that the combatants would
>>strike at each other's colonies, thus spreading the
>>wars far more widely than those of pre-Columbian
>times.
>>
>>War crimes were perpetrated in World War I. Chemical
>>weapons were used in the First World War despite the
>>Hague Conventions of 1899 and 1907 having outlawed the
>>use of such weapons in warfare. The Ottoman Empire was
>>responsible for the Armenian genocide, the death of
>>over one million Armenians during the First World War.
>>
>>Second World War
>>Main article: World War II
>>
>>This section needs additional citations for
>>verification. Please help improve this article by
>>adding citations to reliable sources. Unsourced
>>material may be challenged and removed. (September
>>2018) (Learn how and when to remove this template
>>message)
>>The Second World War occurred from 1939 to 1945 and is
>>the only conflict in which atomic bombs have been
>>used. Hiroshima and Nagasaki, in Japan, were
>>devastated by atomic bombs dropped by the United
>>States. Nazi Germany was responsible for genocides,
>>most notably the Holocaust, the killing of six million
>>Jews. The United States, the Soviet Union, and Canada
>>deported and interned minority groups within their own
>>borders, and largely because of the conflict, many
>>ethnic Germans were later expelled from Eastern
>>Europe. Japan was responsible for attacking neutral
>>nations without a declaration of war, such as the
>>bombing of Pearl Harbor. It is also known for its
>>brutal treatment and killing of Allied prisoners of
>>war and the inhabitants of Asia. It also used Asians
>>as forced laborers and was responsible for the Nanking
>>massacre where 250,000 civilians in the city were
>>brutally murdered by Japanese troops. Non-combatants
>>suffered at least as badly as or worse than
>>combatants, and the distinction between combatants and
>>non-combatants was often blurred by belligerents of
>>total war in both conflicts.[citation needed]
>>
>>The outcome of World War II had a profound effect on
>>the course of world history. The old European empires
>>either collapsed or were dismantled as a direct result
>>of the wars' crushing costs and, in some cases, their
>>fall was due to the defeat of imperial powers. The
>>United States became firmly established as the
>>dominant global superpower, along with its ideological
>>foe, the Soviet Union, in close competition. The two
>>superpowers exerted political influence over most of
>>the world's nation-states for decades after the end of
>>the Second World War. The modern international
>>security, economic, and diplomatic system was created
>>in the aftermath of the wars.[citation needed]
>>
>>Institutions such as the United Nations were
>>established to collectivize international affairs,
>>with the explicit goal of preventing another outbreak
>>of general war. The wars had also greatly changed the
>>course of daily life. Technologies developed during
>>wartime had a profound effect on peacetime life as
>>well, such as by advances in jet aircraft, penicillin,
>>nuclear energy, and electronic computers.[citation
>>needed]
>>
>>Third World War
>>Main article: World War III
>>Since the atomic bombings of Hiroshima and Nagasaki
>>during the Second World War, there has been a
>>widespread and prolonged fear of a potential Third
>>World War between nuclear-armed powers. The Third
>>World War is generally considered a successor to the
>>Second World War and is often suggested to become a
>>nuclear war, devastating in nature and likely much
>>more violent than the First World War and the Second
>>World War combined; in 1947, Albert Einstein commented
>>that "I know not with what weapons World War III will
>>be fought, but World War IV will be fought with sticks
>>and stones."[6][7] It has been anticipated and planned
>>for by military and civil authorities and has been
>>explored in fiction in many countries. Concepts have
>>ranged from purely-conventional scenarios, to limited
>>use of nuclear weapons, to the complete destruction of
>>the planet's surface.
>>
>>Other global conflicts
>>See also: American Revolutionary War, Cold War, War on
>>Terror, Second Congo War, Syrian Civil War, Iraqi
>>Civil War (2014–2017), and Cold War II
>>Various former government officials, politicians,
>>authors, and military leaders (including the following
>>people: James Woolsey[8] Alexandre de Marenches,[9]
>>Eliot Cohen,[10] and Subcomandante Marcos[11]) have
>>attempted to apply the labels of the "Third World War"
>>and "Fourth World War" to various past and present
>>global wars since the closing of the Second World War,
>>for example, the Cold War and the War on Terror,
>>respectively. Among these are former American, French,
>>and Mexican government officials, military leaders,
>>politicians, and authors: Despite their efforts, none
>>of these wars are commonly deemed world wars.
>>
>>Wars described by some historians as "World War Zero"
>>include the Seven Years' War[12] and the onset of the
>>Late Bronze Age collapse.[13]
>>
>>The Second Congo War (1998–2003) involved nine nations
>>and led to ongoing low-level warfare despite an
>>official peace and the first democratic elections in
>>2006. It has often been referred to as "Africa's World
>>War".[14] During the early-21st century the Syrian
>>Civil War and the Iraqi Civil War and their worldwide
>>spillovers are sometimes described as proxy wars waged
>>between the United States and Russia,[15][16][17][18]
>>which led some commentators to characterize the
>>situation as a "proto-world war" with nearly a dozen
>>countries embroiled in two overlapping conflicts.[19]
>>
>>Wars with higher death tolls than the First World War
>>See also: List of wars by death toll and World War I
>>casualties
>>The two world wars of the 20th century had caused
>>unprecedented casualties and destruction across the
>>theaters of conflict.[20] There have been several wars
>>that occurred with as many or more deaths than in the
>>First World War (16,563,868–40,000,000), including:
>>>
>>>Contents
>>>1 A financing solution
>>>2 Reverse factoring definition
>>>3 The concept
>>>4 Historic
>>>5 An improvement of business relations
>>>6 Advantages
>>>6.1 For the supplier
>>>6.2 For the ordering party (the buyer)
>>>6.3 For the factor (the financier)
>>>7 Optimization of the process
>>>8 Choosing the right reverse factoring solution
>>>9 References
>>>10 See also
>>>A financing solution
>>>The reverse factoring method, still rare, is similar
>>>to the factoring insofar as it involves three actors:
>>>the ordering party (customer), the supplier and the
>>>factor. Just as basic factoring, the aim of the
>>>process is to finance the supplier’s receivables by a
>>>financier (the factor), so the supplier can cash in
>>>the money for what he sold immediately (minus an
>>>interest the factor deducts to finance the advance of
>>>money).
>>>
>>>Contrary to the basic factoring, the initiative is
>not
>>>from the supplier that would have presented her
>>>invoices to the factor to be paid earlier. This time,
>>>it is the ordering party (customer) that starts the
>>>process – usually a large company – choosing invoices
>>>that he will allow to be paid earlier by the factor.
>>>And then, the supplier will himself choose which of
>>>these invoices he will need to be paid by the factor.
>>>It is therefore a really collaborative project
>between
>>>the ordering party, the supplier and the factor.
>>>
>>>Because it is the ordering party that starts the
>>>process, it is her liability that is engaged and
>>>therefore the interest applied for the deduction is
>>>less than the one the supplier would have been given
>>>had he done it on her own. The ordering party will
>for
>>>her part benefit of a part of the benefit realized by
>>>the factor, because he is the one to allow this. And
>>>the financier for his part will make his profit and
>>>create a durable relation with both the supplier and
>>>the ordering party.
>>>
>>>Reverse factoring definition
>>>An alternative financing solution where a supplier
>>>finances their receivables via a process started by
>>>the ordering party, in order to help their suppliers
>>>receive more favorable financial terms than they
>would
>>>have otherwise received for operational and other
>>>pass-thru costs incurred in providing services to the
>>>ordering party.
>>>
>>>Reverse factoring is seen as an effective cash flow
>>>optimization tool for companies outsourcing large
>>>volume of services (e.g. clinical research activities
>>>by Pharmaceutical companies[1]). The benefit to both
>>>parties is that the company providing the services
>can
>>>get the outstanding value of their invoices paid in
>10
>>>days or less vs. the normal 30- to 45-day payment
>>>terms while the ordering party can delay the actual
>>>payment of the invoices (which are paid to the bank)
>>>by 120-180 days thus increasing cash flow. After the
>>>initial period of cash flow optimization, it is
>>>unclear if this will remain of value to the ordering
>>>party because you will then be paying monthly
>invoices
>>>of approximately equal amounts assuming your
>>>outsourced services are stable/average across the
>>>year/future periods. The cost of the "money" is a set
>>>interest rate normally tied to an index plus a bps
>>>adjustment.
>>>
>>>The concept
>>>To fully understand how the reverse factoring process
>>>works, one needs to be familiar with trade discounts
>>>and factoring. Indeed, reverse factoring could be
>>>considered as a combination of these two solutions,
>>>taking advantages of both in order to redistribute
>the
>>>benefits to all three actors. In order to better
>>>understand the process, it is necessary to look at
>the
>>>8 individual aspects of those three solutions:
>>>
>>>trade discount factoring reverse factoring
>>>Eligibility all invoices all invoices validated
>>>invoices
>>>Financement at the ordering party initiative at the
>>>supplier’s initiative at the ordering party
>initiative
>>>Sum financed 100% of the invoice (-discount) part of
>>>the invoice part of the invoice
>>>Interest rate depends on the supplier’s situation
>>>depends on the supplier’s situation depends on the
>>>ordering party’s situation
>>>Payment immediate due date due date
>>>Impact on the Need Working Cash negative none none
>>>Financial interests value of the discount (but
>>>involves cash outflow) none percentage of the
>discount
>>>Deployment to other suppliers slow (adaptation to
>each
>>>supplier) none fast
>>>Historic
>>>The concept itself of the reverse factoring is not
>>>that original. It is the automobile constructors who
>>>started to use it. Particularly, Fiat, as of the
>>>1980s’, used this kind of financing process for its
>>>suppliers in order to realise a better margin. The
>>>principle then spread to the retail industry because
>>>of the interest it represents for a sector where
>>>payment delays are at the heart of every negotiation.
>>>
>>>In the 1990s’, and the early 2000s’, the reverse
>>>factoring was not used a lot because of the economic
>>>contexts that did not allow it to be an efficient way
>>>of financing. Today however, because of the NTICs and
>>>various legal advances, it has become a very
>>>successful tool.
>>>
>>>An improvement of business relations
>>>In the basic invoicing or factoring framework, there
>>>are always some risks that threaten the invoices:
>>>
>>>fraudulent invoice (illegal, erroneous calculation,
>or
>>>typographical error)
>>>an underestimated time of payment delay
>>>an incorrect estimation on the object of the invoice
>>>(a service poorly executed)
>>>etc.
>>>By using the reverse factoring, these risks are
>>>materially reduced.
>>>
>>>Advantages
>>>For the supplier
>>>The supplier has its invoices paid earlier; therefore
>>>it can more easily manage its cashflow, and reduce by
>>>the way the costs of receivables management.
>Moreover,
>>>as it is the ordering party that puts its liability
>at
>>>stake, it benefits from a better interest rate on the
>>>trade discount than the one that would have been
>>>obtained by going directly to a factoring company.
>The
>>>reverse factoring is very useful for small companies
>>>that have for clients large groups, because it
>creates
>>>a more durable business relation as the big company
>>>helps the smaller one, and doing so gets some extra
>>>money. This opinion does not account for the poor
>>>relations caused by unilateral changes to credit
>>>terms. Smaller companies are generally not given a
>>>choice to accept the additional cost of finance
>>>imposed by this process. In a factoring process, if
>>>there is any problem concerning the payment of the
>>>invoice, it is the supplier that is liable, and has
>to
>>>give back the money he received. In the reverse
>>>factoring process, as it concerns validated invoices,
>>>as soon as the supplier receives the payment from the
>>>factor, the company is protected. The factor will
>have
>>>to get its money from the ordering party. Finally, in
>>>a trade discount system, the supplier is forced to be
>>>paid cash, regardless of its cash flow. Some reverse
>>>factoring platforms identified this problem, and
>>>therefore propose to the suppliers a more
>>>collaborative solution: they choose themselves the
>>>invoices they want to receive cash, the others will
>be
>>>paid at due date.[2]
>>>
>>>For the ordering party (the buyer)
>>>The reverse factoring permits to gather all the
>>>suppliers in one financier, and that way to pay one
>>>company instead of many, which eases the invoicing
>>>management. The relation with the suppliers
>benefiting
>>>of the reverse factoring is improved because they
>>>benefit from a better financing solution, and their
>>>payment delays are reduced; for its part, the
>ordering
>>>party will gain some extra money reversed by the
>>>factor and pay her invoices to the due date. Making
>>>suppliers benefit from such advantages can be a
>>>powerful leverage in negotiation, and also ensure a
>>>more durable relation with the suppliers. Moreover,
>it
>>>ensures that the suppliers will be able to find
>>>advantaging financing in case of cash flow problem:
>>>using reverse factoring assures that the suppliers
>>>will still be in business, and are reliable. With the
>>>reverse factoring, instead of paying numerous
>>>suppliers, most of the invoices are centralized with
>>>the same factor; it is always better for the accounts
>>>department to deal with one company to pay than
>>>several. This can also be simplified and speeded by
>>>using a reverse factoring platform combined with
>>>digitalization of business transactions (i.e. EDI).
>>>
>>>For the factor (the financier)
>>>By taking part in the reverse factoring process, the
>>>factor realizes a benefit by making available cash to
>>>the supplier and supporting in its place the delays
>of
>>>payment. However, in opposition to the factoring, in
>>>this situation the factor is in a more durable
>>>business relation as everyone benefits from it. Other
>>>advantage for the financier, is that he works
>directly
>>>with big ordering parties; it means that instead of
>>>going after each and every supplier of that company,
>>>he can reach faster and more easily all of the
>>>suppliers and do business with them. Therefore, the
>>>risk is less important: it passes from a lot of
>>>fragmented risks to one unique and less important.
>>>
>>>Optimization of the process
>>>Often the reverse factoring is used with the
>>>dematerialization to speed the process. As the whole
>>>goal of it is to make money available to the supplier
>>>as fast as possible, a lot of companies decide to
>>>dematerialize their invoices when they start a
>reverse
>>>factoring system, because that way it saves few more
>>>days, plus all the advantages of the
>dematerialization
>>>(less expensive, and benefic to the environment). In
>>>average, it can shorten the delays by 10 to 15 days.
>>>
>>>Choosing the right reverse factoring solution
>>>The core principle of the reverse factoring is to
>have
>>>a way that benefits to all the actors. That way, it
>is
>>>necessary to have good relations with the other
>>>actors. The principal risk in reverse factoring is
>>>that the supplier gets trapped in a system where he
>>>cannot decide which invoices he need paid immediately
>>>or not, and therefore he becomes the victim of that
>>>system. Therefore, it is necessary to choose a
>>>collaborative platform that would permit the supplier
>>>to select which invoices they will be paid early, and
>>>when they will be paid.
[
Next Thread |
Previous Thread |
Next Message |
Previous Message
]
| |
Feedback: 