Who is it for?
For all companies wishing to insure against the risk of default in respect of their customers. The offering of SG Factoring provides a contractual context with two different operating solutions:
1. SG Factoring determines and grants a credit limit on debtors proposed by the assignor, with cover of the default risk up to 100% of the receivables assigned.
2. SG Factoring uses the insurance contract on trade receivables that companies have already signed, through a loss payee clause for some of the major debtors, identified in consultation. The advantage? The company keeps the management of the current insurance contract, while also benefiting, in the event of default of the debtor, from “Pro Soluto” cover at 100%* of the approval granted by the insurer of the receivables.
(* for compensation normally equal to 85/90% from the insurer).
For both solutions and in the case of an intervention with notification, SG Factoring deals directly with the allocation of payments, reminders and recovery of the debt from the debtors.
SG Factoring also offers solutions based solely on a receivable guarantee, without subsequent notification to the relevant debtors.
- Transfert to SG Factoring the risk of receivable losses;
- Preliminary evaluation of new customers;
- Updating of the commercial risk of customers;
- Outsourcing of customers assigned;
- Transformation of fixed costs into variable costs of management and debt recovery.
- Opportunity to advance a percentage of the amount of the receivables assigned;
- Ability to finance the development of revenues and stabilise financial flows without an impact on the bank credit limit;
- Improvement of balance sheet ratios.
SG Factoring determines the level and the percentage of the guarantee “Pro Soluto” that may be granted to the assignor in respect of the debtors covered by the assignment of the receivables; the assignor must then accept the assignment “Pro Soluto” for the benefit of SG Factoring of receivables from the debtors approved agreed between the parties (usually, invoices with a maturity of 90-120 days, maximum 180 days).
In the event of default of the debtor the guaranteed payment by SG Factoring is made after a specific number of days from the expiry of the receivable assigned (usually 240 days), within the maximum amount determined by the approved credit limit for each debtor.