1. Credit management

When you submit a factoring application, you must always provide an up-to-date overview of your outstanding receivables, including due dates. This information is essential for a factoring company, as it allows them to assess the quality of your internal administration, the risk of litigation related to your activities, and your customers' payment behaviour.

In some cases, it is therefore advisable to first strengthen your credit management and settle any outstanding items before submitting a factoring application.

Nextfactor has experienced credit managers who practise flexible and targeted credit management, paying maximum attention to maintaining your business relationships. They work directly from your own accounts, but on behalf of Nextfactor.

This means that no time is wasted on administrative tasks and they can focus fully on debtor management.

Agreed overdue debtors are contacted personally and by telephone, after which a payment or repayment plan is agreed and carefully monitored. This approach is always taken in close consultation with you and is temporary in nature, so that you can then resume credit management yourself or entrust it to the factoring company. Sometimes Nextfactor's support generates so much additional working capital that factoring is ultimately no longer necessary. On the other hand, it also happens that a factoring company wants to start working with you immediately, but prefers Nextfactor to continue working on cleaning up the receivables portfolio at the same time.

In any case, Nextfactor's services contribute to a structural optimisation of your working capital.

2. Debt Sale

Would you like to clean up your debtor portfolio without placing an additional burden on your organisation, while maximising your cash flow? Then Debt Sale could be an attractive option. With Debt Sale, you sell your overdue receivables, usually from customers with whom the commercial relationship has now ended. It can therefore be seen as an alternative to a debt collection agency or bailiff.

Unlike factoring, Debt Sale is also possible for claims against private individuals. By selling your portfolio of overdue claims, you receive an immediate payment, which directly strengthens your working capital.

The Nextfactor team has more than 15 years of experience in buying and selling overdue receivables, both for consumers (B2C) and businesses (B2B). We specialize in analyzing, valuing and managing debtor portfolios and work together with international partners in the Debt Sale market.

3. Credit insurance

In most cases – certainly when there are a limited number of debtors – the factoring company requires that cover against the insolvency risk of your debtors be included in the contract. This is also the safest solution for you, as you then do not run the risk of having to repay pre-financed amounts if a debtor becomes insolvent or goes bankrupt.

In some situations, you can take out a credit insurance policy yourself and designate the factoring company as the beneficiary of this policy. In that case, the factoring company will receive indemnity in the event of non-payment by one of your debtors. When this is possible, it usually offers you only advantages: you maintain direct contact with the credit insurer, which is useful when you want to increase credit limits.

A credit insurance policy does, of course, involve a cost, but this is often offset by a lower factoring fee, as the factoring company does not then have to provide the risk cover itself.

Nextfactor works with the leading credit insurers in Belgium and can, if desired, introduce you to them directly.

4. Business loans

In some cases, factoring is simply not possible. The most common obstacles are:

• You mainly have claims against private individuals.
• Your invoices do not relate to a clearly defined delivery or service provided, such as advance invoices or instalment invoicing.

Nextfactor works with providers of alternative financing in the form of business instalment loans. These are particularly suitable for temporary additional financing needs. Nextfactor can submit an application file for you to the most suitable party.