Entrepreneurs need cash to meet their obligations and payments, but maintaining good liquidity is sometimes difficult when companies have credit sales, which delays having the money in their hands.
Faced with this scenario, there are financial services that allow companies to collect their invoices in advance, that is, without waiting for the expiration date.
It is known as advance invoices or factoring. For example, company A can collect today through Interbank, or another financial institution that offers this service, the invoice that its client, company B, has scheduled to pay in 90 days. Then this company, B, will pay the full amount of the invoice directly to the bank on the 90th day.
What are the benefits of bill advance?
— Generates liquidity to meet obligations.
— It has shorter terms than a traditional loan.
— The credit evaluation is simpler, since it is supported by invoices.
— The cost of the service —the interest rate— is usually better than any other financing option.
— The payment is received directly into the account and can be consulted through the website.
— Generates savings in operating and administrative collection expenses.
— In the case of Interbank, the application is 100% digital and can be submitted through the bank’s website.
56% of Peruvian companies use factoring
Already 56% of Peruvian companies use factoring and, of that percentage, 57% do it to obtain immediate liquidity, 16% to reduce the operational load and free their company from the collection of an invoice, 14% to acquire a competitive interest rate and avoid getting into debt with financial entities, and 13% to eliminate cumbersome face-to-face procedures, according to a report by the fintech Rextie.
More than half of the companies in Peru have migrated to digital factoring and only 45% use factoring traditional face-to-face Within the percentage of companies that use it online, 46% carry out their operations through a laptop, 38% through a desktop computer, 14% through cell phones, and 2% thanks to a tablet .
It should be noted that, a few years ago, the World Bank projected that the factoring It was going to be one of the mechanisms to improve access to financing and promote the growth and investment of companies, especially in Latin America, where 52% of SMEs do not have any type of aid.