A Comprehensive Factoring System

24 July 2019 Anna

There is a financial service that becomes more and more popular increasing its value by 20% year by year. It is factoring. It makes an instant career because it brings real, tangible benefits to entrepreneurs called factorers: it liquidates their frozen receivables thus allowing to continue to invest the funds and to develop the venture regardless of whether the customers (recipients) payments are slow or not. Unpaid invoices are immediately converted into account money by putting them into the factorer’s hands.

To finance invoices, a comprehensive system is needed to handle factoring processes, while its functionalities are of key importance. Undoubtedly, entrepreneurs expect that an entire factoring process system will be automated, fully managed online and diversified financial products will be available.

 

Introduction

More and more companies are deciding to provide factoring services, and what we mean here is both banks and companies outside the banking sector. The quantity of these services corresponds to the large quantity of types of factoring that we can use. Forms of factoring available on the market include classic factoring, complete, incomplete, with or without insurance, microfactoring, nanofactoring, invoice financing or reverse factoring (the so called purchase payment). What these forms of financing, as well as being open to creating new financial products is only offering the best and holistic factoring system that is ready to buy, implement and being adapted to both the bank’s and the financial institution’s requirements.

Four years ago, in our software house,we began working on our project. The fruit of it is a universal and comprehensive factoring system. This tool can be implemented regardless of which factoring services you provide or which services you plan to offer to your clients. This is a finished product that automates all elements of the purchase financing and invoicing process from submitting the application, through supporting the credit committee and signing the validated agreement by means of a text message, to automatic transfer of funds to the factorer’s account.

If you wish to automate and robotise your factoring services or if you are wondering whether you could base your financial service on a finished factoring system – read its main features.

Factoring System - How Does It Work?

Full Integration

Our system is 100% integrated with the internal IT infrastructure. Each time we adjust its functionalities to the client and thus we guarantee that the entire factoring process will be conducted in one place without having to go outside the website.

In addition, our factoring system is integrated:

  • with a financial and accounting system configured according to IAS (International Accounting Standards),
  • with electronic banking which allows you to transfer funds automatically and bank statements are settled with full Split Payment support,
  • with data warehouse.

With this architecture, your requests can be quickly processed and agreements can be implemented. The factoring requests that are sent to the system are processed in one place, fully on-line, and this makes the entire credit committee can work simultaneously and make a decision remotely.

Additionally, full integration is a guarantee that errors are instantly detected and the response to anomalies is quick, which will improve your workflow with the client.

Automation

In the system that we created, all possible processes have been automated. With that having done, lots of time can be saved, workload can be reduced, and this is a contribution to a significant increase in profits.

If you look at the whole process of handling applications and annexes in terms of customer offers, analyst work and the work of the credit committee, you can see that the work is automated at their every step:

  • with data automatically downloaded from business information providers, the risk analysis and scoring of the entity submitting its application have been automated;
  • agreements, factoring limits and commissions are settled automatically;
  • agreements are signed on-line and the documents are validated automatically;
  • deductions are prompted, and compensations are automated along with transfer of deduction documents;
  • fees and commissions for receivables, agreements and the limit consumption are calculated fully automatically;
  • all files and documents: agreements, sales invoices, notes, assignments, etc. are generated automatically;
  • obligatory reports for GIFI (General Inspector of Financial Information) will also be sent automatically.

With such a scale of automation, it is difficult to avoid repetitions. When the factoring system will automatically process the application, you will be able to take care of business development.

Automatic Risk Analysis

With the automatic downloading of data from 16 external sources, from various economic information providers (including BIK (Credit Information Bureau), business intelligence, insurers, KRS (National Court Register), CEIDG (Business Activity Central Register and Information Record), KNF (Polish Financial Supervision Authority), as the operators start to analyse the factoring application, they have already collected all the data that so far were collected for several hours.

With the data collected, in turn, the automatic scoring of the entity and a fully credible risk analysis can be performed. The system is also prepared to issue an automatic credit decision – check it and trust it.

Sales — Omnichannel Support

The system works fully on-line, enabling the client’s cooperation with the factor through the website and providing the client with access to a full resource of information about agreements and how they are settled.

With the client admitted to a complete and fully automated platform, the omnichannel strategy — multi-channel sales can be implemented. Leads are collected automatically and made available in order to, for example, prepare dedicated marketing campaigns.

With the platform, you can also transparently cooperate with brokers and agents as well as make a simple settlement of traders and your partners’ remuneration.

Versatility

With the factoring system, all financial products, such as recourse and non-recourse factoring, insured and non- insured factoring, factoring advances, reverse factoring can be handled … In addition, more than 40 types of configurable commissions and fees in customer agreementscan be handled.

It is intended for factors with various scale of operations: both for small entities and for corporate entities. It has been successfully implemented and has been refined for 5 years in close cooperation with clients, so we are sure that it will respond to all current business needs.

Factoring management system is intended for factors with various scale of operations: both for small entities and for corporate entities. It has been successfully implemented and has been refined and developed for 5 years in close cooperation with the factor that takes first place in the ranking of factors from outside the banking sector. Therefore we are sure that it will respond to all current business needs. It is a finished factoring system that we will tailor to your needs.

BPA implementations to our clients, read the history of their successes:

What can we do for you?

Do you have an idea, but your system is not fully satisfying?
Are you in need of dedicated software or process automation and robotisation?

Learn more about our services and arrange a meeting.