28Factoring is a tool that generates liquidity, allowing MSMEs to optimize their accounts receivable and improve indicators such as return on assets, operational cash flow and accounts receivable turnover.
Among the main advantages of using factoring we find:
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Obtain immediate financing because you do not have to wait until the deadline for paying bills.
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Improve cash flow by increasing the liquidity of the company.
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It provides protection in inflationary processes by having money in advance, with which it does not lose purchasing power.
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Reduction in the number of invoices that are awaiting the due date.
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As there is less portfolio receivable, credit risk is reduced.
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It is faster and more agile than having to process a traditional loan.
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Avoid administrative tasks such as court charges.
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Reduces operating costs, by assigning accounts receivable to a company that is dedicated to factoring.
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As long as the payer complies with the agreed payment, no indebtedness is reported.
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Thanks to this, companies achieve healthier financial consolidation and a better position compared to their competitors by not having to depend on liquidity to continue growing.